November 20, 2007

Low borrowing rocks the global markets

The global financial markets are in a dire position, the melt down which stated in the States is spreading around the world and every time there is a slight bump the whole industry flinches. Given that the property values have not really been entered into the equation, there is a very delicate situation.

With all of the mechanisms that have been put in place, with each nation and industry having there own rules, it makes for a very delicate situation where anything can upset the markets and cause financial worries not only for governments but for individuals too.

It seems that the next bump is coming from the states again, this time it is the sub prime auto loans sector which is the same principle as the sub prime mortgage market but could cover a wider market. This has the potential to make a lot of people a bit jittery over the coming months.

Source [Reuters]