The subprime woes which have spread to global markets, something I covered here, are set to continue this week are set to continue with all eyes on the federal reserve this week.

The big question is whether the meltdown reflects deeper problems that go beyond subprime.

In a note to clients, There is more wrong than just Subprime,
ABN-Amro Morgans analyst Michael Knox says earnings in the US have slowed right down and continue to decline. Similarly, investment in equipment and software has fallen to 0.1 per cent, about as close to zero as one can get without falling through the floor.

These dynamic markets are intriguing to watch, provided you're like me and don't have any money invested in them (to avoid conflicts of interest). But the worrying part is watching how the risk is being spread around. There are real positives to that. But the dangerous part is that some players are just not equipped to handle the risk, and it is impossible for regulators to pick which ones will struggle. Which means there will be casualties. A more comprehensive discussion of that point is in the Financial Times.

So where will it end? And upturn in the housing market might come sooner than expected, says WP Carey School of Business professor of finance and real estate Anthony Sanders.

But as with every market, there will be winners and losers.