Finance by a Croat

The credit market deterioration spreads to the “safer” areas of the market while FreddieMae continues to struggle as new Congressional reserve requirements restrain its abilities to purchase additional mortgages. These rules, while sharply curbing the liquidity in the system, have forced the Mae’s to sell into inclement market conditions, leading to a further decline in the value of these securities. There is a bottom somewhere out there but it is clear that the credit markets have yet to find out, leading to the likelihood that homebuilders, mortgage lenders, and any firm with exposure to this market will continue to face challenging market conditions for at least 2008.