In this paper, Robert A. Jaeger, Ph.D., Senior Market Strategist for BNY Mellon Asset Management, examines  some of the broad themes driving the current financial meltdown and the housing bubble that preceded it. This includes a focus on leverage, with special attention to three sources of trouble: no-money-down mortgages, over-leveraged investment banks, and the selling of credit default swaps. He also reviews how flawed regulation and "free market fundamentalism" contributed to the mess, and the recent environment of self-reinforcing fear and downward momentum. Bob concludes with a look at the perspectives of both growth- and value-oriented investors in today's investment environment.

For more information or a hard copy, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular BNY Mellon Asset Management  product.