Payment Due
This was from the Dow Jones Wire. Apparently some one at CIBC (Canadian Imperial Bank of Commerce) thinks there is going to be hell to pay for all of the easy money that has been floating around.
12:26 (Dow Jones) A payment is coming due for all those years of loose credit. As liquidity becomes constrained, CIBC postulates that 10% of U.S. consumers will be hit by a "segmented consumer recession." There will be serious implications, the firm says, for credit-card lenders and sub-prime mortgage lenders. "In both sectors, we believe there will be unprecedented credit losses, and that profitability will be cut by at least 25%." CIBC goes on to say "it is clear to us that the economy is bifurcated between 64% of haves and at least 10% of those about to have a lot less." (PJV)
No link.
12:26 (Dow Jones) A payment is coming due for all those years of loose credit. As liquidity becomes constrained, CIBC postulates that 10% of U.S. consumers will be hit by a "segmented consumer recession." There will be serious implications, the firm says, for credit-card lenders and sub-prime mortgage lenders. "In both sectors, we believe there will be unprecedented credit losses, and that profitability will be cut by at least 25%." CIBC goes on to say "it is clear to us that the economy is bifurcated between 64% of haves and at least 10% of those about to have a lot less." (PJV)
No link.
posted by Little_Silvered at 6:27 PM
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