Sunday, July 06, 2008

Credit Tightening

WSJ's 'ahead of the tape'
More than 55% of U.S. banks tightened lending standards for large and midsize companies in the second quarter, according to a recent Federal Reserve survey, the highest since the first quarter of 2001. In the two other instances of such harsh tightening since 1990, a steep profit decline followed three quarters later, notes Citigroup chief U.S. strategist Tobias Levkovich.

A profit decline 3 quarters later... In other words, it hasn't really begun.
The article is on the start of earnings season. Its not bullish. But out of fairness and keeping to 'fair use', I'll leave it to those who subscribe.

Got Popcorn?

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