Is the credit crunch still tightening??

First off, I have to apologize for not posting on this blog in over a month. I had a major computer set back when I lost my complete hard drive. It has taken me over a month to get back on track and in the swing of things. Unfortunately this blog was put on the back burner during that time......

We all know that the market was starting to turn a month or so ago. Reports were published about homes moving and many of us thought that we saw some light at the end of the tunnel, maybe that was wishful thinking but we have experiences many setbacks in the last month. I listened to an interview with many executives of the top banks in the country. What they said was that they are waiting for the government to issue a stimulus package much like the one earlier on in the year before they back off on their credit tightening. This is not good for us as consumers.

Mortgage brokers continue to get email alerts from our lenders outlining tougher and tougher lending restrictions while at the same time asking us for business. So I know the banks and lenders are still hurting as well but continue to cut their nose off in spite off their face. I am hoping that we have found a bottom to this volatile market.

There was another interview that I watched where they were talking to the president of one of the largest hedge funds in the US. He said that the credit market won't change until February. I will leave my political views out of this as much as I can but I don't think that a new president is going to come in and fix these problems immediately. He didn't elaborate on whether that was what he was thinking would bring the change to the credit markets or not. He did however mention the same issues as the big banks did by saying that the government would ease credit problems in the near future with another stimulus package. I think that is what he was talking about in February with the credit markets changing. The question is, can those affected by the credit crunch ride it out until February? The other problem is, who is affected by this credit crunch. Even the diesel repair shop that I have work on my truck has experienced an extreme slowing of their clientele with these market changes.

Hopefully we will get some news that allows me to post some positive news on this blog. As you know I try to be optimistic so my next post I will find something positive in this market to post. It is Friday!! Have a great weekend.