Credit Markets Bracing For More Trauma
The credit markets are bracing for more trauma as the subprime mortgage market meltdown continues to infect credit markets worldwide in unexpected ways.
It appears that the investment bankers did a bang up job in packaging questionable loans and making AAA rated securities out of them by some sort of financial magic. Unfortunately, investors are now feeling the pain as loans made to people with little ability to repay go sour.
Gee, who would have ever thought that folks who were granted housing loans without credit checks or income and employment verification might lie a bit on their loan applications? And that the appraisal and credit rating agencies would be so sloppy with their approvals and credit ratings?
