"We can assume that the chaos of recent months has been caused by defaults on dodgy loans sold two years ago – in the summer of 2005.
"But the sale of sub-prime loans didn't end in the summer of 2005. It continued, at more than £100bn a quarter, for the rest of 2005, for the whole of 2006, and only fell significantly in the second quarter of 2007 – when the problems became so obvious they could no longer be ignored.
"What does that mean? It means that even if the banks are being honest about their sub-prime losses to date – itself a big assumption – there are still much bigger losses to come." - Liam Halligan - Fed will have to cut rates again
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