Show Me the MONEY!!!!!
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.