In my line of work, I have to think about possible future credit spreads. I’ve nudged us to benefit from a widening of credit spreads, so I am putting some money down on what you’re saying (about a more general credit contraction). But I have to admit it’s a gut instinct. What’s your thinking behind a spreading of credit tightening from mortgages to other loans? How do you see that playing out?
I agree also with your description of what the Fed is doing and why. But does that mean you think the Fed’s likely actions will help house prices?
