kevintx

Why Is This Market Holding Up?

The bursting of the housing bubble is driving the credit crunch. The thinking was that it was 'contained' to housing or even just to subprime and would not necessarily hurt stocks. The crunch effect mechanisms affecting overall corporate earnings are still not completely clear. The bond market has been spooked more so far, maybe they're just a little quicker on the uptake when it comes to overleveraged financial shenanigans.