The credit crunch is coming. Soon older Americans may struggle to access credit and home equity loans.
The fallout from the failure of Silicon Valley Bank remains with us today, despite a generous bailout courtesy of the U.S. government and the Federal Reserve. “When the banking stress first surfaced, my primary takeaway for U.S. equity markets was that it would lead to a credit crunch”, said Mike Wilson, Morgan Stanley’s chief U.S. equity strategist. In fact, the credit crunch is already begun and will leave many Americans unable to get access to numerous forms of credit from HELOCs, credit cards, and even mortgage loans. Wilson says, “The data suggests a credit crunch has started. And the data shows the “biggest two-week decline in lending by banks on record as they simultaneously sell mortgages and treasuries at a record pace to offset deposit flight”.
Simply put, banks are looking to reduce their risk exposure amidst an uncertain economy that most expect will enter Read More
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