What’s In Store For The New Year?
SOURCE: Forbes
With the global credit crash, the new year’s financial outlook is more complex.
Tuesday rates were cut by an additional .25% to encourage confidence in credit markets brought on by the subprime crash. Experts are saying that additional rate cuts may need to happen for people to be willing to take on risk.
According to Sanford Bernstein analyst and Brad Hintz, “The fixed income market is simply going through a repricing of credit risk.” They believe that much of the pressure will end on the first day of trading in 2008.
Commercial banks pull back from lending and shed assets to boost their tier one capital at the end of the calendar year, thus tightening credit
– Commercial Loan News from Steelhead Capital, Inc
Original post by Capital Synergies