Credit Crunch Recovery appears farther away than previously thought
Aaron Wilmot
June 17, 2009
In some rather bad economic news, it has been reported that the infamous "credit crunch" or "credit crises" will possibly last into next year,
according to a survey of various private equity companies commissioned by the well respected accounting and advisory company Rothstein Kass. According to the
public report posted on the Prnewswire website, it was based on interviews with more than two hundred managing partners around the country. Unfortunately for all of us, this report was eerily similiar to a recent report on the respected 'Daily Reckoning' news website, which
concluded that The financial crisis is far from over. It went on to say that the real estate bubble branched into other areas of the financial system in such a way as to cause continuing instability. Apparently, the ARM and the so-called subprime crisis was only the first shoe to drop. For example, there are the so-called Alt-A type of loans which usually have 5-year reset periods. This simply means that the interest rates adjust to the higher rates over time. In addition, the Alt-A reset surge does not actually really begin in a big way until next year, and it happens to continue through 2012. By the way if you happen to need any credit counseling services then may I suggest Commcredit. They can provide you with both debt consolidation and credit counseling services in your area.
Furthermore, there is also something called ´option ARMs´ which look like something to dread, from an economic point of view. Broadly speaking, these loans typically have very modest "teaser" type rates which often are interest only. Just like the aforementioned Alt-A loans, the reset surge for these particular types of loans begins next year. When that happens, it could really throw a monkey wrench into the financial recovery, or at least keep the "credit crunch" from subsiding anytime soon. There have also been some other troubling reports, such as that of Commercial Real Estate Vacancies Rising. I heard one New York based analyst on the radio the other day saying that he believes the commercial real estate sector could be the next big shoe to drop. I hope for our sake he is wrong, but I have a sneaking suspicion that he may be right. I have heard a number of opinions regarding the commercial real estate sector as of late.
according to a survey of various private equity companies commissioned by the well respected accounting and advisory company Rothstein Kass. According to the
public report posted on the Prnewswire website, it was based on interviews with more than two hundred managing partners around the country. Unfortunately for all of us, this report was eerily similiar to a recent report on the respected 'Daily Reckoning' news website, which
concluded that The financial crisis is far from over. It went on to say that the real estate bubble branched into other areas of the financial system in such a way as to cause continuing instability. Apparently, the ARM and the so-called subprime crisis was only the first shoe to drop. For example, there are the so-called Alt-A type of loans which usually have 5-year reset periods. This simply means that the interest rates adjust to the higher rates over time. In addition, the Alt-A reset surge does not actually really begin in a big way until next year, and it happens to continue through 2012. By the way if you happen to need any credit counseling services then may I suggest Commcredit. They can provide you with both debt consolidation and credit counseling services in your area.
Furthermore, there is also something called ´option ARMs´ which look like something to dread, from an economic point of view. Broadly speaking, these loans typically have very modest "teaser" type rates which often are interest only. Just like the aforementioned Alt-A loans, the reset surge for these particular types of loans begins next year. When that happens, it could really throw a monkey wrench into the financial recovery, or at least keep the "credit crunch" from subsiding anytime soon. There have also been some other troubling reports, such as that of Commercial Real Estate Vacancies Rising. I heard one New York based analyst on the radio the other day saying that he believes the commercial real estate sector could be the next big shoe to drop. I hope for our sake he is wrong, but I have a sneaking suspicion that he may be right. I have heard a number of opinions regarding the commercial real estate sector as of late.
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