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A Big Problem

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Don Schreiber is running at least three businesses, but that doesn’t stop him from closely monitoring how the markets affect clients.

Asked whether the unfolding subprime mess is a major or minor issue, Schreiber, normally no Cassandra, says that we’ve just seen the tip of the iceberg so far. He says he’s recently learned more about the danger to the overall market created by the collapse in 1998 of the Long Term Capital Management hedge fund.

“If Long Term Capital was a level two” magnitude on the Richter scale of seismic activity, “then subprime is a level six or seven.”

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