More Credit Crisis News

The only good news coming out of the credit markets these days would probably be no news at all. There have been no shortage of stories with news on the problems in the credit and mortgage markets these days. To top it off, most end-of-year finance stories have been forecasting a continuation of the problem into next year…and beyond.

The NYTimes just released another story looking for more troubles in 2008. They quote an analyst with the dire view that “the severity of the subprime debacle may be only a prologue to the main act, a tragedy on the grand stage in the corporate credit markets.”

They do, however, temper that forecast with the possibility that things might not be so bad yet. History will ultimately be the judge, and so now we can be circumspect and try to soak it all in.

To quote the article again:

It was the greatest credit party in history, made possible by a new financial architecture that moved much of the activities out of regulated institutions and into financial instruments that emphasized leverage over safety. The next year may be the one when we learn whether the subprime crisis was a relatively isolated problem in that system, or just the first indication of a systemic crisis.