Its earnings report time for the stock market, and the financial sector is off to a bad start as losses from subprime writedowns are reported and come to light. Not only that, but risky debt that has been underdisclosed is also contributing to losses in the financial sector. Bloomberg reports on the effects of these subrpime writedowns:

Merrill’s writedowns add to more than $100 billion of
subprime-related losses reported since May by the world’s
largest banks and securities firms. Citigroup Inc. posted the
biggest loss in its 196-year history earlier this week as the
largest U.S. bank’s subprime mortgage investments tumbled in
value by $18 billion.

This is an indication that, for mortgage lenders, the subprime crisis is far from over. And that it will send ripples through the economy for some time to come.