Industries Other Than Banking Start to Hurt
As expected, businesses other than banking are starting to suffer from the subprime meltdown. The fall of Swiss Re indicates the trouble which may soon affect many other industries.
CommonSenseForecaster is reporting:
Swiss Re has conducted a thorough review of other credit default swap exposures and was satisfied it has no similar exposures, according to a slide presentation before a conference call with analysts.
Unprecedented and severe ratings downgrades by credit ratings agencies and the lack of a liquid market for the securities “has resulted in a significant and material reduction of the value of the underlying assets,” Swiss Re said on Monday.
While lenders and providers of home equity line of credit loans are obviously vulnerable to market declines, the world economy is finding out that sub prime lending extends out towards many other industries as well.
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