BY AMOD CHOUDHARY
While the financial world was obsessed with the sub-prime mortgage crisis that resulted in a staggering loss of at least $380 billion dollars, a related and equally potent occurrence in the auction rate securities market did not catch the attention of the American public. The reason for the public’s non-interest in auction rate securities may be because it is not well known to the general public outside of financial and legal institutions, or because it was intentionally advertised as something else–cash equivalents. The market failure of auction rate securities has affected the liquidity of approximately $330 billion dollars.
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