David Kirkpatrick

July 24, 2009

End of credit crunch in sight?

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 12:43 pm

Maybe. If nothing else things are looking better. Seems like a lot of indicators are on the uptick right now.

From the first link:

Multiple market signals are leading analysts to bet that the worst credit crisis since the 1930s is easing, as debt markets slowly heal after two years of extreme upheaval.The return of private investors to markets they had shunned as recently as the first quarter this year, a surge of corporate debt issuance, and the easing of inter-bank lending rates all indicate that financial rescue measures by government are working, analysts said.

Yet while debt markets are on the road to recovery, turning around a battered economy will be a longer haul that’s still fraught with danger, they said.

“The revival of corporate bond issuance and the narrowing of spreads from the peaks are good news,” says Ward McCarthy, managing director with Stone & McCarthy Research Associates, in Princeton, New Jersey.

The bad news however includes “continued poor performance of many financial firms and the persistent reluctance of banks to lend,” especially to homeowners, adding stress to an already strained housing market, said McCarthy.

U.S. house prices are still sliding and foreclosures rising in many places. Federal Reserve Chairman Ben Bernanke has warned the job market may struggle for another two years.

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