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View Diary: A Crunchier Credit Crunch (20 comments)

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  •  Not limited to subprime (3+ / 0-)

    Thank you.

    The mortgage market debacle is touching sub, near, prime, and super-prime, with the effects spilling over into the credit card markets as well. Last week, Amex reported significant deterioration in its super-prime customer segments.....

    •  Yep.. (3+ / 0-)
      Recommended by:
      mitch2k2, Pris from LA, Super Grover

      Amex is making allowances for losses at 9%.  This is a reflection of the "prime" credit space...
      The problem with so many financial services companies, Banks, money market funds & retirement funds is that many of their investments are being carried as "held to maturity" and are not being subjected to Basil II mark to market requirements.
      This will begin to bleed through as more & more institutions, through failure or delevering are forced to  bring these toxic items back onto their books.  These assets as well as their failed hedges using Credit Default Swaps that are now proving worthless.
      A close look at Fannie, Freddie, WaMu and Merrill Lynch and almost any major firm or fund will reflect what I am discussing.

      As far as the contraction in credit availability goes, down 8%-9% since January 2007 in now effecting the regional banks and their ability to fund small & mid sized businesses....
      Yep.  Prime at nearly every level is now being impacted.

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