Thursday, January 31, 2008

S&P Mulls $500B in Mortgage Downgrades

NEW YORK (AP) — Standard & Poor's Ratings Services is considering slashing its rating on more than $500 billion of investments tied to bad mortgage loans, the ratings agency said Wednesday.
The massive downgrade would threaten a broad swath of the world's finance industry, S&P said, ranging from Wall Street's trading desks to regional banks to local credit unions.

This isn't going to end any time soon. The commercial real estate market has to follow, and the labor picture is sure to worsen also.