This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Richard Wootten MW 11:00-12:15 Prof. Heaston Wall Street Journal Article One Summary Article: Credit Woes Hit Tender Spot Author: David Reilly and David Enrich Date: Thursday, February 14, 2008 The credit crisis has become one of the most pressing global financial issues in the last 5 years. With the massive write downs, people are realizing that they cannot afford the houses they have gotten mortgages for. Also, this has affected student loans. Obviously, this is pretty important to most college students financing their own education. When the credit crisis hit, many people were shocked to realize that their mortgages had been reinvested in SIV’s. (Reilly 2008) This investment, combined with the massive write downs could cause long term headaches due to our relatively sluggish possibly receding economy. However, the idea that banks might have to absorb more balance sheet offsets, can cause a ridiculously large increase in investment risk. (Reilly 2008) Unknown to most investors, this has a ridiculously large increase in investment risk....
View Full Document
This note was uploaded on 03/27/2008 for the course IT 41 taught by Professor Clayton during the Spring '08 term at Drake University .
- Spring '08