I’ve been learning about hedge funds and CDOs (”Colateralized Debt Obligations”) recently in the wake of the Bear Stearns funds collapse. It looks to me like this could be the beginning of the unraveling. Check out this article if you’d like to understand CDOs better. (Wouldn’t everyone?)

The Bank for International Settlements is also warning of dangers ahead, citing the Great Depression as a backdrop for comparison.

Personally, I’m not going crazy with fear, but as I’ve previously written, I decided to hedge my bets a little by investing in gold and gold stocks. We’ll find out soon if that was wisdom or overzealous worry.