"Thawing Credit Market Should Ease Concerns" – NFW

5 responses

  1. Pete Toth says:

    I see the sheep fleece has not covered MRM’s optical sensors.

    How very nicely explained, Mr. second M.

    Jim Cramer et al really should stow their pompoms till after housing hits bottom, and maybe then some…

  2. Craig Netterfield says:

    From Andrew Ross Sorkin in the NYTimes:

    The dirty little secret of Henry M. Paulson’s $250 billion give-away to nine U.S. banks, Mr. Sorkin says, is that those banks are doing exactly what everyone else is doing with their cash these days: sitting on it.

    “It doesn’t matter how much Hank Paulson gives us,” an influential senior official at a big bank that received money from the government told Mr. Sorkin. “No one is going to lend a nickel until the economy turns.”

  3. Duncan says:

    It ain’t pompom time. But a drop in LIBOR/TED spread/whatever is a step in the right direction. And it does reduce the cost of capital which is a good thing for those loans that are being made.


  4. Pete Toth says:

    Duncan, the issue du jour seems to be recession – how deep, how long?

    But the crisis is far from over. We are probably halfway through it.

    Like when you throw a ball up in the air (deflation), at it’s highest point, for a short time, it appears to be suspended (where we are now probably), before it plummets back to earth (inflation). And it will be the inflation that will do the most damage to Jaques Le Plombier.

    At least that’s how I understand it. Of course I was drunk for my Economics Finals and barely passed.

    Maybe MRM can shed more light…

  5. T says:

    The banks are in turmoil. After checking around I got a better (cheaper) unsecured line of credit (Prime) than a mortgage or secured line of credit (prime .5-1). I guess mortgages are an issue in Canada – but unsecured LOC aren’t?! In any it was rate more than the current Prime -.75 Variable mortgages that I currently have from CM…

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