||Like it? PLEASE +1 it! Thanks!|
Subprime is Survivable, But ...
The destruction of value and wealth thus far in the US as a result of the housing sector crisis is manageable. Its effects are mitigated and could well be more than offset by the strength of the export sector. However, the sub-prime crisis is but the tip of the credit risk mis-pricing iceberg. Unsecured consumer loans and car loans, and the large stock of ABS backed by credit card receivables, are waiting to join the credit risk-repricing party.
The single best thing that could happen would be for the true magnitude of the losses suffered by banks and other exposed parties to be revealed and put in the P&L. Until what happens, fear of getting stuck with the hot potato makes banks unnaturally unwilling to extend credit against the kind of collateral that they would not have thought about twice accepting at the beginning of the year.
Related ArticlesChoosing Not To Participate In the Recession
Mortgage Rates And Subprime Crisis – An Overview
You Have No Frame of Reference Here, Donny
Too Big To Fail: Part Of The Story
Small Business and Politics
Network Marketing: How To Use It To Make Money
How To Reach Success In The Area Of Network Marketing
Starting a business, good checklist to help out!
Destined or Doomed?
The seven essential willabilities of real leadership
Investment Series Preview: The “Good Bye and F__k You” Letter
PRIVATE MONEY IS THE WAY TO GO
Direct Marketing and the Economy
Succeeding in the New Normal -The battle between the status quo and change
Banking on Your Phone
How to Market Your Small Business When the Future is Uncertain
The "2Bs": Buffett. Basics.
Selling is not a dirty word
What Darwin Can Teach Us About the Economy
Another big bank bailout:
Free PDF Download
Sorry, You Can’t Be My Online Friend
By Paul Kedrosky
About the Author: Paul Kedrosky
RSS for Paul's articles - Visit Paul's website
Dr. Kedrosky is currently the Executive Director of the William J. von Liebig Center in San Diego, California. Using an innovative seed capital program, the Center catalyzes the commercialization of technologies from the internationally-ranked University of California, San Diego. Dr. Kedrosky is also a venture investor with Ventures West, Canada's largest institutional venture capital firm, where he is most active in consumer technologies and software. He is currently on the board of Marqui Corporation, a marketing automation software company.
Click here to visit Paul's website.
Information Externalities Car Dealers and Spaghetti Osteopaths
The Bank Blame Game Again
The Trouble with Out of the Box Thinking
Calculating CarbonLevered Earnings
The Top Ten Signs the Valley is on Tilt Again
Related Forum Posts
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
By: Evan Carmichael
By: Evan Carmichael
||Like this page? PLEASE +1 it!|