Tuesday, October 21, 2008

The coming crisis...

Via Hilzoy,

1 comment:

J said...

You're right, this is a coming issue, though this is one frankly, the market has been ready for. Securities backed by CC's have always been lower rated due to their high payment default risks, thus the impact on the financial sector shouldn't be nearly as widespread or as large as the mortgage mess where mortgage backed securities were rated as AAA even when the underlying assets were highly risky.