Saturday, Jul 07, 2007
Credit crunch will be nasty
Daily Telegraph: Banks 'set to call in a swathe of loans'
The United States faces a severe credit crunch as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans, according to a report by Lombard Street Research.
The group said the fast-moving crisis at two Bear Stearns hedge funds had exposed the underlying rot in the US sub-prime mortgage market, and the vast nexus of collateralised debt obligations known as CDOs.
The United States faces a severe credit crunch as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans, according to a report by Lombard Street Research.
Posted by eric pebble @ 03:11 AM (133 views) Add Comment
1 Comment
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1. japanese uncle said...
I like the smell of “subprime Chernobyl” in the morning. It smells like Victory!