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Any Signs Of Credit Tightening In The Usa Yet?


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Is anyone keeping up with what banks are doing over there. As the US housing market is turning quickly now, are banks reacting or is it just that people are afraid to borrow so much now as they think they may go into NE and the banks are continuing to pedel their (not so cheap) credit to anyone with a pulse.

What US banks are doing may offer clues as to what will happen here in a year ot two.

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Is anyone keeping up with what banks are doing over there. As the US housing market is turning quickly now, are banks reacting or is it just that people are afraid to borrow so much now as they think they may go into NE and the banks are continuing to pedel their (not so cheap) credit to anyone with a pulse.

What US banks are doing may offer clues as to what will happen here in a year ot two.

You would not believe the amount of debt related questions I am getting submitted to freehelpadvice, something is changing without a doubt.

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Wolsey agm statement today says exactly what the heading is about:

"In the USA, the Group has

seen a further softening in the US housing market and also weaker lumber prices

than originally expected. This has impacted sales and profits from the US

Building Materials business ("Stock") in the three months of the financial year

to 31 October 2006."

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All the commentators are talking about the Fed cutting rates next so that should muddy the waters further

The lower the rate the weaker the dollar will become, the greater the chance of imported inflation (energy). The US needs >$2bn per day in capital inflows to pay the interest on what it owes. Rates are not going down there nor here. For all the talk of credit tightening money supply in UK is growing at circa 15% per year. We have slightly more room for manouvre but rates are going up. Let's not forget the long term AVERAGEin UK is 6% and US 5% !

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