Unsecured Loans: asset-free opportunity for those in need

We cringe when we hear the guests on bubble TV claim that the credit crisis is almost over and that it has been exaggerated by fear-mongers. In reality the credit crisis is getting worse and spreading to as yet unknown areas. Each week seems to bring a new surprise that reveals an unexpected financial event and some new acronym for a security that few have ever heard of before. At first it was RMBS, CDO, CDO squared, SIV, ABCP and CLO. Now it's TOB, VRDO, ARS, LevX and LCDY. Each revelation leads to new concerns, exposes new victims, creates the potential of even more writedowns and leaves everyone wondering where the next surprise is coming from.

As it turns out this week's new problem are auction-rate securities (ARS), an obscure but important segment of the credit market. read more