The Financial Market's Version of Mad Cow Disease
In his most recent writings on the credit markets, PIMCO's Bill Gross opines that that the deflating supply of credit is the "financial market's version of Mad Cow Disease." The economy is facing the dual challenge of sinking home values and lenders' higher standards and loan rates. He points out that the interest rate on a 30-year mortgage loan has actually risen since the Fed began to stimulate the economy nearly one year ago.
For more details on Bill Gross' views of the credit markets, please click here.