As defaulted mortgages and bankrupt lenders bring the weakest segments of the institutional mortgage industry to their knees, investors across the broader financial markets have begun dumping other debt instruments and monetary investments – that would seem to have nothing to do with home loans. As Associated Press correspondent Dan Seymour lucidly observed in a recent news article, “The widening fallout in the U.S. mortgage industry has reminded investors of a risk that so many seemed to have forgotten – the fear of risk itself!”
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