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That name no longer holds any meaning for me

Words have the power to both destroy and heal. -The BuddhaIn thinking about where the economy, Fed, and markets will be going in 2008, I find my thoughts dominated by considerations of liquidity. Readers have heard me use the term “liquidity crisis” or “credit crunch” during 2007, but have rarely (if ever) seen me use “credit crisis” or “solvency crisis.” This is purposeful.Why do I avoid calling this a credit or solvency crisis? Surely I am not here to downplay the problems we’re having in residential lending, or even consumer finance in general. I hardly need to enumerate the many problems in consumer lending. I think mortgage foreclosures will break all records in 2008, probably by a long shot. In addition, other types of consumer lending have and will suffer as well. Consumers have been using equity in their homes to help bail them out of other types of debt for many years, but in 2008, this option will be largely unavailable. The result will be weak performance in everything from auto loans to credit cards….
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