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Hello Credit Crunch

Published: 8/14/2008 11:05:49 AM

I'm not a "sky is falling" type, but my belief is that the credit crunch that's been talked about in the media so much recently is actually just beginning.

In the late 1980s, after the Savings and Loan industry loaned far too much money and paid for their indiscretions by having a nearly complete implosion of their market value, the actual credit crunch happened only after banks started failing and stopped lending.

We are seeing evidence of bank failures now of a pullback in lending to both businesses and consumers.  Below is a roughly 20 minute Bloomberg audio interview of David Goldman of Asteri.  Although he talks about a number of other contributing factors to the financial crisis, such as what he perceives as the beginning of the failure of the hedge fund industry, it is a very succinct and thought-provoking interview:

Interview with David Goldman

Don Jones

VentureDeal

 

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Don Jones
CEO, VentureDeal

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