Saturday, July 7, 2007

Credit crunch will be nasty

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 (417 views)
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One thought on “Credit crunch will be nasty

  • japanese uncle says:

    I like the smell of “subprime Chernobyl” in the morning. It smells like Victory!

    Reply
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