|
August 17, 2007
A turbulent day say the finance commentators about the volatility of global finance markets and as they work to try to reassure everybody that their company is not caught up in the repricing of credit that is taking place due to the fallout from the US sub-prime market.
Alan Moir
The bottom line is that credit is now more expensive, the hedge funds dump the Australian dollar to finance their loans, and borrowing money is going to become more expensive for both businesses and households.This is no Beltway issue. It is another blow for Howard's battlers.
It was no suprise that John Howard and and Peter Costello quickly seized on the global financial market turmoil to bolster their economic credentials and warn voters of the risks of changing government. As if the Howard Government controls the re-pricing of credit. Financial instability highlighted the need to keep economic management in safe hands was their message.
|
Gary,
it is only the non-bank lenders (eg.,RAMS) who should be affected by the higher prices for credit. From what I've read RAMs borrowed short to lend long. So they are going to pay big increases--1% to 3% to get new credit.