How a liquidity crisis becomes a credit crunch.(briefing: The Economy) From: ABA Banking Journal | Date: October 1, 2007| Author: | COPYRIGHT 2007 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information) Copyright information

MY SENSE IS THAT THERE IS still a lot of confusion surrounding what has been transpiring on Wall Street and around the world since August.

Let me try and explain how this could end up as an economic disaster for the average consumer and business. Not that it will, mind you, but how it could.

Modern finance has taught us how to value risk while financial innovation has created the tools that have allowed banks and investors to trade risk like never before. This has been instrumental in fostering new highs in homeownership, reducing the cost of capital, fostering the growth ...

Related newspaper, magazine, and trade journal articles from HighBeam Research

(Including press releases, facts, information, and biographies)

	Commercial paper: friend or foe? (Cover Story) Magazine article from: ABA Banking Journal ; ...by Lehman Brothers. Asset-backed commercial paper is essentially a marriage...have sponsored most asset-backed commercial paper programs. In doing...participating in an asset-backed commercial paper program may forego...
	Securitization options blossom. (asset-backed commercial paper) (includes related article on Federal Agricultural Mortgage Corp.) Magazine article from: ABA Banking Journal ; ...Asset-backed paper. Asset-backed commercial paper programs have dominated...on what counts as asset-backed commercial paper. Depending on whose...and $150 billion in asset-backed commercial paper authorized to be issued...
	Fed to buy commercial paper.(Inside Track)(Brief article) Magazine article from: The New American ; ...be named the Commercial Paper Funding Facility...S. issuers of commercial paper through a special...unsecured and asset-backed commercial paper. The CPFF will...the short-term commercial paper market could...
	Commercial paper more popular Newspaper article from: The Milwaukee Journal Sentinel ; Money-market investors flocked to asset-backed commercial paper last year, doubling sales...About a third of the entire commercial paper market last year was asset-backed...That's up from about 16% of commercial paper sales five years ago. Commercial...
	DundeeWealth Reduces Exposure to Asset-Backed Commercial Paper Newspaper article from: CCNMatthews Newswire ; ...reduce its exposure to asset-backed commercial paper. The $787 million...remove all non-bank asset-backed commercial paper from their banking...exposed in any way to asset-backed commercial paper or CDO sub-prime mortgages...
	Vena Resources has no Exposure to Asset-Backed Commercial Paper Newspaper article from: CCNMatthews Newswire ; ...confirms that the Company has no exposure to asset-backed commercial paper, including sub prime mortgages. Vena's cash...cash holdings are liquid and not exposed to asset-backed commercial paper was appropriate. Vena is debt free and well-financ...
	The paper trail Mysterious loans called asset-backed commercial paper have taken centre stage in the global liquidity crisis. As all eyes turn to the Bank of England, Iain Dey untangles the web of interconnecting debts and explains how this previously mundane market has fuelled the crisis Newspaper article from: The Sunday Telegraph London ; ...felt in the markets for commercial paper - short-term loans for...refinancing of Grampian, its asset-backed commercial paper (ABCP) vehicle - the largest...buyers' strike for these commercial paper assets continues much...liquidity will be tight." The commercial ...
	The commercial paper market: Who's minding the shop? Magazine article from: Regional Economist ; ...markets by defaulting on $17 million in commercial paper. By the end of February, the amount...60 percent of Mercury's outstanding commercial paper and 30 percent of its outstanding...perhaps on the scale of the $82 million commercial paper default by Penn Central Railroad some...
	WestJet States It Has No Holdings of Asset-Backed Commercial Paper Products Newspaper article from: CCNMatthews Newswire ; ...In light of concerns regarding the disruption of asset-backed commercial paper (ABCP) products and in response to questions posed...interest-bearing bank investments. WestJet has no exposure to the asset-backed commercial products that have been an area of concern for the...
	Unscrambling the eggs; Commercial paper.(The crisis in short-term funding will take time to solve)(asset-backed commercial paper ) Magazine article from: The Economist (US) ; ...Canadian's experience with asset-backed commercial paper (ABCP), a global market...everyone is supposed to swap commercial paper, which is short-term and...point more to roll over such commercial paper than it did before the crisis...

For more facts and information, see all results

Find more facts and information related to the article "How a liquidity crisis becomes a credit ..."