BBC FAQ on the subprime crash - very readable

The BBC has put together a very readable FAQ about the "meltdown" in the sub-prime mortgage industry and the related bank losses (and wins, but nobody's talking about who's winning - yet). It's the best summary I've seen anywhere. For example ...

BBC NEWS | Business | Q&A: World stock market falls

.... Even if the central banks stem the financial panic, there seems to have been a general shift in market perceptions about risk. Generally, the riskier the investment, the higher the interest rate - but now the additional premium for risky investments (the 'spread') is set to widen sharply. When people with money to lend become worried about risks, they tend to put their money in safe investments. So there has been a rush to invest in government bonds, like US Treasury bonds, and safe currencies, like the dollar. In contrast, people are now demanding much higher interest rates to lend to smaller companies or to the governments of developing countries. Investors have also grown wary of lending to private equity funds who want to buy and sell companies. This may mean that this is much less takeover activity than in the past few years, which could also affect the stock market...