One more comment on the subprime mortgage issue. I believe it will have a broader and more negative impact on the economy than is currently reflected in the stock and bond markets. Federal Reserve efforts to soothe the wounded with lower interest rates won’t help because, thanks to tighter real estate lending policies (from the lenders and their regulators) and the growing risk of further defaults, the problem will be the availability of credit, not the price of credit -- it will be cheap to borrow, but only strong borrowers will qualify.
Will this be bad for investors? For those who have to sell assets at depressed prices, yes. But, this kind of risk can be minimized. I’ll share some thoughts on that later in the week.
Larry Halverson: I've Been Thinking
Larry Halverson, CFA, Managing Director of MEMBERS Capital Advisors, Inc., is a veteran of more than 35 years in the financial services industry. Links: SUBSCRIBE TO: I've Been Thinking | 
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