US subprime worries just the tip of the iceberg

The US homeowners already failing to keep up with the payments on their subprime mortgages - or 'liar loans' - are the first indication of a much greater problem.

On April 14, 1912, the mighty Titanic hit an iceberg and the ship's fate was sealed in just over 2 hours and 40 minutes. The boat's structural design and weight made sinking inevitable and swift. Over 1,500 lives were lost, along with personal fortunes amounting to over $600 Million in 1912 dollars.

Icebergs are interesting because only about 10 percent of the ice is visible above water. Seeing an iceberg in the distance is any Captain's worse nightmare and the iceberg that took down the Titanic was no exception. The famous ocean liner could not manoeuvre around the massive iceberg quickly enough to avoid hitting it.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.