Is there no end to the carnage wrought by subprime madness? Far from being “contained,” the fallout is now spreading to fictional realms populated by some of the mightiest icons of human civilization. On Wednesday afternoon, the Financial Times published a scoop breaking the news that funding for a slate of upcoming blockbuster movies may be delayed because of Wall Street’s current woes. The studio in question is MGM: The movies on the list include “The Hobbit” and the next installments in both the Terminator and James Bond sagas. It seems that in recent years Hollywood has moved to a relatively new financing model in which it raises funding for a slate of upcoming films by having investment banks tap the pockets of private equity funds, hedge funds and institutional investors. In this case, MGM had contracted with Goldman Sachs and Deutsche Bank to raise as much as a billion dollars. [More]

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