There are two very good articles worth reading on the current issues at Bear Stearns, and the funny money action at a few hedge funds.

Side Pockets @ The Big Picture

Toxic Waste @ Bullion Vault (by Paul Tustain)

The whole thing is starting to sound like a Ponzi Scheme to me…? and if the impact is large enough, we could see buyouts start to struggle (already happening) and eventually share buybacks start to slow down.

Bulls and bears trade places on the margin, so if the sub-prime issues are not “well contained” but have even a slight impact on the overall market/economy, we could well see the tide shift.? It doesn’t look like it yet, but these are the things to keep our eyes on for further indications of change.