Friday, Jan 18, 2008
Credit squeeze will get worse in 2008
MoneyWeek: Credit squeeze will get worse in 2008
Financial institutions face plenty more write-offs on mortgage-related securities, and other parts of the credit market – student, car and credit-card loans – look vulnerable.
Posted by mary @ 11:03 AM (239 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. drewster said...
"But the major theme of 2008 may be credit default swaps (CDSs)"
These are one of the most popular types of derivatives, instruments which Warren Buffet in March 2003 described as "Financial Weapons of Mass Destruction". It may take five years for his predictions to come true, but it looks like he will be proved right in the end. Incidentally at the same time he thought shares were overvalued - both the Dow Jones and the FTSE100 are up 50% since then. Maybe he's not quite the sage we like to think? Or maybe he's just playing a very long game.
(Source: BBC News: Buffet warns on investment 'time bomb')
2. Icarus said...
Wish I'd coined the expression 'cascading cross-defaults'.