David Rosenberg Explains:

Posted By on August 1, 2010

Why this is the Titanic and the life boats have already been launched!

The household debt/income ratio is (still) near record highs of 120% and one-quarter of the consumer universe has a sub-600 FICO score – which means they are ineligible for Fannie or Freddie mortgage financing.

The banks have few opportunities to lend – households are either not creditworthy enough to lend to or are busy paying off debts, and companies that do have any expansion plans have enough cash on their balance sheet to finance their initiatives.

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