Credit Crunch News

The credit crunch continues to cause problems for finance markets and the wider economy.
Losses from mortgage defaults caused big insurance firm AIG to require a bailout. Lehman Brothers went bankrupt, after the Fed decided they weren't important enough to bail out.

The Credit Crunch continues to cause problems for the beleaguered housing market. House price transactions have fallen to their lowest level since 1959 (link). See: Effect of credit crunch on housing market

The deteriorating housing market at least increases the hope for an interest rate cut

Because of continuing problems with the mortgage market and the economic slowdown, house prices are likely to continue to fall in 2009. However, house prices could rebound in the late 2009 - When Will house prices recover

The Fed is proposing a $700bn bailout for bad debt in America. It is being intensely scrutinised with many questioning the nature and scope of the deal. - Questions about Bailout

1 Comments:

Anonymous Credit counsellor said...

For years there were whispers on Wall Street about Bernard Madoff’s hedge fund. The cynics said the returns were too good, too steady and Madoff’s operation always looked too slim for the tens of billions of dollars it was managing. But given Madoff’s more than four-decades of experience as trader and past service as chairman of the Nasdaq Stock Market the wealthy kept giving him their money. Well, it looks like those concerns were right all along now that federal prosecutors have charged the 70-year-old Madoff with securities fraud, in what could amount to one of the biggest Wall Street scams ever. Securities regulators, in a civil complaint, say Madoff’s scheme may have cost investors up to $50 billion—although that figure appears to be based on Madoff’s own bravado. At a minimum, it appears the $17 billion Madoff was managing earlier this year may be gone.

December 16, 2008 at 2:04 AM  

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