jepittman

Credit Crisis Watch: Signs of Progress?

Very good work. The thawing of the credit markets and return of normal money flows is key to the economy recovering. IMO this is a process rather than an event. The trends appear favorable. Fears will slowly abate and traditional economic incentives will reassert themselves allowing an economic recovery to gradually assert itself. As the author implies there is a ways to go but the improvement is apparant.

Credit Crisis Watch: Are the Markets Thawing?

It is still too soon for normalcy to return to these markets. I saw a good piece by Tony Crescenzi that looked at the credit market distortions immediately after the 1987 panic. It showed that it took several months for the markets to settle down and return to normal. His point was that as the emotions of fear and panic subsided so did the credit markets. It doesn't happen quickly but it does happen. It is likely we will experience something similar in this panic.