NYT, 8/5/07
Following the spin of the credit market has been fascinating for me. As this article points out, a correction of the type of credit that is being “corrected” right now hasn’t been seen before. What fascinates me is all the implications. Like, credit squeeze. I would argue that money had flowed into the stock market, less money was available for the credit market, housing prices and interest rates rise, refinancing needs to happen because of 3/1 ARM’s and the like (don’t we all wish we went for the 30 year fixed right now?), but inflation stays in check. The results are this, as the article says, lack of available money to finance things. Wow. So how do you play it?
