Andrew Hughes

Credit Crisis Watch: Are the Markets Thawing?

Very timely analysis Prieur. Knee jerk reactions by the markets seem to come right after any piece of news from the Treasuries of various countries. But with the underlying Economic indices becoming steadily worse by the day, reality has to set in at some stage. The easing of credit has to rely on the creditworthiness of the borrower, not the willingness of the lender. This latter scenario has been the cause of so much destruction to date. Creditworthiness is decreasing with every extra person on an unemployment line and every other firm gone to the wall. Until this fall has bottomed, I can't see any Bank easing access to credit without exposing themselves to even more defaults.