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alstry (< 20)

Show Me the MONEY!!!!!



February 12, 2008 – Comments (1)

Is credit tighening turning into a crisis on a number of fronts:


The $6.1 billion plan to pull auto-parts supplier Delphi Corp. out of bankruptcy protection was in jeopardy yesterday ... J.P. Morgan Chase & Co. and Citigroup Inc.'s Citigroup Global Markets, are having difficulties syndicating the loan to other lenders...


Failed auctions of mostly municipal debt totaled approximately $6 billion Tuesday, with Citigroup Inc. the lead underwriter on the bulk of the sales ... The failed auctions Tuesday follow at least six others, sparking concerns this once-safe corner of the credit markets is the next area to crumble.

"It's a crisis of confidence," said Jon Schotz, chief investment officer of Saybrook Capital in Santa Monica, Calif.

Is everything becoming subprime?  Corporate Debt?  Commercial Real Estate Debt?  Prime Residential Loans?  Municipal Debt?

Trillions of  Corporate Debt.

Trillions of Commercial Real Estate Debt

Trillions  of Residential  Loans

Trillions of Municipal Debt

Now the consumer's borrowing capacity is constrained.  Constraint has now spread to Commercial RE, Corporate Debt, and Municipal Debt.

The above continues, it will affect every aspect of our lives.  The ability for our communities to build schools, hospitals and other  infastructure while  curtailing  job development.  A rising tide lifts all boats, when the tide goes out, we will see who isn't wearing a swimsuit.

1 Comments – Post Your Own

#1) On February 12, 2008 at 10:29 PM, alstry (< 20) wrote:

More credit contraction:

Even homeowners with a solid payment history and excellent credit are getting an unpleasant surprise from their lenders: their home equity credit lines have been frozen.

Countrywide Financial notified 122,000 customers that they may no longer draw on their credit lines, even if they were previously approved for a higher limit...One of them is a woman who spoke to News10 and asked that her name not be used. "Apparently the fact that I have excellent credit, that I am not late, and that I have lived in my home for 25 years didn't count for much," she said.
In a statement on its Web site, Countrywide said federal regulations allow lenders to block additional extensions of credit in a declining market

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