There is a law of investments that is as immutable and unforgiving as the law of gravity: Investments with High Yields have High Risks. Focusing on the potential earnings and losing sight of the safety of the principal is what happened to many who were hit by the subprime tsunami.
The trick in taking chances in investments is to have a solid base of safe / low risk investments, so that you are not incapacitated if the worst happens. For better earnings and growth in your investment portfolio, maintain some in high yielding high risk investments. The …read more

Switzerland, banking haven of secret accounts, has been hit in a big way by the US subprime crisis.
The largest Swiss bank, UBS (which also has more than 30,000 employees in its US subsidiaries & affiliates), has been forced to write down $ 37 billion in losses from American subprime mortgages. Like many overseas investors who got swamped by the subprime tsunami, UBS did not lend directly to American home buyers, but bought mortgage-backed securities which promised high yields.
Like any amateur investor, UBS (a financial institution dating back to the 18th century) considered the income from the interest more …read more