As the housing meltdown and credit squeeze continue to play out, and more banks and financial services firms announce write-downs and quarterly losses, it's important for the financial community to begin the complex task of not just analyzing what went wrong, but also assessing what can be done to improve the markets in the future.
The credit crisis in the collateralized debt markets started--as most people already know--with a meltdown in the subprime mortgage market, which caused a liquidity crisis for institutional investors and hedge funds. Most bulge-bracket firms have issued earnings warnings; some, such as Bear Stearns and Goldman Sachs, have gone even further and rescued flailing funds.
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