In the US, the Federal Reserve has recently unveiled its latest views on what's happening with American borrowers at present; and it's not good news.
Banks intend to tighten lending criteria further in the third quarter for nearly every conceivable type of loan, as what started initially as a squeeze on mortgage lending is now affecting all forms of borrowing."
Another trusted financial source of opinion is Oppenheimer's bank researcher, Meredith Whitney. At that time, she forecast that there would be "unprecedented credit losses" for subprime mortgage lenders and she was right. forex factory
Last week, Whitney told Fortune magazine that banks aren't cutting costs or loan portfolio losses fast enough, and that lenders need to "get real" about mortgage-related debt valuations. whitney bank
"I don't think we're near the end of write-downs," Ms Whitney told Fortune, "so I continue to see capital levels going lower, capital raises diluting existing shares further, and stocks going lower." Capital Economics summed up the gloom saying, "12 months into the credit crunch, the worst still lies ahead".