It's possibly troublesome for the economy.
Excerpt:
"The unknown is how far the credit contagion will spread. While rising, overall delinquency rates are still fairly low. But if banks continue to be hit by defaults, it may constrain their lending in other areas. Credit spreads, which have remained remarkably narrow, could widen. Meanwhile, Congress's newfound preoccupation with 'predatory lending' could, if it leads to changes in the law or in tough lending standards, increase the credit squeeze currently beginning to be felt. Decreasing consumer access to credit would in turn cast a pall over consumer spending and add another drag on the economy."
And if that does happen, we're sure to hear that "it's all Bush's fault!" from our Antique Media pals, and their "progressive" sidekicks.
Count on it.
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