Its been a year since BearStearns was brokered in a last minute deal. California institution IndyBank followed. Then Lehman Brothers, AIG, Washington Mutual and others. Today, the marketplace has stabilized and rebounnded off its lows. We’re out of the woods - Right?
Over the past week, its encouraging to see signs that things are improving, however I have to wonder if another shoe could fall. If you’re reading this post, you likely know someone whose credit card limits have been lowered - substantially. In years past, credit cards were an efficient and effective source of capital and provided the necessary cash flow to start and grow a business. Its also been a source of capital for consumers in good times and bad. That source in many instances has dried up and no longer a credible source of money.
And this is where the next shoe comes into play. To regain its footing, the marketplace needs consistency and adequate financial resources. Do we have this? There is an interesting article over at Forbes. Steve Forbes interviews Meredith Whitney, one of few that saw the mortgage exposure and resultant financial meltdown of a year ago. Its well worth the read. She may very well be foretelling a Without Warning Event. At least now, we should be aware of the potential for such an event.
Tags: finance, Risk, Without Warning
