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Showing posts from March, 2008

After financing, foreclosure, then what?

Following last write-up, they have been so much going on with the credit issues which led to unprecendented corporate activities such as Jamie Diamond checkmates the once mighty Bear Stearns at humiliating price of slightly above USD2 a share, comparing to its all-time high of USD160 a share during its hayday which was not a distant past. Is the end near for financial institutions with credit crisis? My simple reading is far from it. Expect more. Here goes the prediction: a) The next follow-up credit crisis will be foreclosures. When too many assets to be auction off, expect bargain-hunting to come in along with deep scepticism on whether the dust has finally settled down. The expected verdict of this conviction is harsher punishments in term of uncertainty and quick deteriotation of asset quality. b) Next, another type of credit-related crisis is expected to be unfold, but may not be of the same scale as sub-prime but enough to further derail the already ill-economy of US an