credit markets - in crisis ?

Discussion in 'Economics' started by Wallace, Oct 28, 2008.

  1. in an interview i watched yesterday the guy was saying that it's not the stock
    mkts that's the problem but the credit markets:

    that they haven't bottomed, spreads are at record highs and going higher, that
    there's daily forced selling of major structured credit products and portfolios,
    discounting is dramatically worse, 90% of high yield bonds are liable to default
    over the next 5 years - impossible, credit mkts discounting 20% yields

    if you can make sense of that, can you explain what's going on, what the whole
    picture is and consequences of what he's referring to
  2. In a nutshell, the "bond market" is much, much bigger than the "equity market". :cool: