Saturday, March 8, 2008

Credit market has collapsed

Agency Mortgage-Bond Spreads Rise; Markets `Utterly Unhinged'

``Everything is telling you the financial system is broken,'' Simon, whose Newport Beach, California-based unit of Allianz SE manages the world's largest bond fund, said in a telephone interview today. ``Everybody's in de-levering mode.'' ``The single biggest concern right now is who's the next hedge fund to blow up, and how big are they,'' ``Traders are putting their phones down and backing slowly away from their desks,'' O'Donnell said today in a telephone interview. "

Posted by happyrenterz @ 10:21 AM (1095 views)
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5 thoughts on “Credit market has collapsed

  • This article really does paint a bleak picture of the situation the USA is in.

    I think the Fed knows that if they dont reduce interest rates further then the meltdown that will ensue will be on an unparalleled scale.

    How long before the UK finds itself faced with the same challenge?

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  • japanese uncle says:

    They can survive doing peasants work in the worst case in the US. There is not enough land in the UK for this. And the intensity of the bubble is even more serious here than there.

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  • @japanese uncle

    It’s not going to be so bad. Think of a soup kitchen as an opportunity to meet interesting new people.

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  • voiceofreason says:

    But I thought house prices only ever went up because of sound fundamentals. Shortage of supply, immigration, demographics, divorce etc etc

    Nothing to do with financial VIs foisting reckless credit on anyone who passes the fog test (mirror to the mouth, if it fogs, he’s breathing so lend him some cash). Nothing whatsoever.

    House prices only ever go up….

    Don’t they ?

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