According to a new Bloomberg survey, the world wide CreditCrunch™ appears to be slowly fading away.
You might be wondering what the heck is this CreditCrunch? There has been a lot written on the subject, but not too much explained at a basic level. So here goes…..
The current issues with credit is that it has become more expensive. What does that mean? Well, essentially it means that the funding of lower credit investments have become more expensive. Why? Because people were afraid of risk and wanted only the safest investments. Treasury Bills (T-Bills). Read more
Yesterday, I wrote about the basics of Asset Backed Commercial Paper (ABCP) and how the problem came to be. Today I’ll be focusing on who’s to blame in this mess.
