More on the Global Credit Crunch

All the hullabaloo and these playtime junk securities – have affected the bank balance sheets of innumerable once solid companies around the world.

What is going happen after the initial round of “What a surprise” the papers they bought for hundreds of million dollars have to written down or written off, companies with one easy access to credit will find it no longer easily accessible.

What happens in the longer term about the viability of these banks?

One day the ratings agencies are going to get into the act perhaps March, April, June this year and start witting down the effective credit ratings for these and other banks – what will those banks have in the way of long term viability – and one unsung industry amongst all this – what about the bond insurers – will they retain their ratings or go the way of the banks?

Then of course these securities that are at the heart of all of this financial meltdown, were once approved by the same credit ratings companies.

Thoughts please ??

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