Posthaste: Canada’s housing market seen as ‘main casualty’ of looming credit squeeze
Credit Suisse’s historic rescue appears to have quieted fears that the world is tumbling toward a global financial crisis — for now.
But as the dust settles on more than a week of fear and turmoil sparked by the collapse of the Silicon Valley Bank, there is one impact most economists agree will linger — credit conditions are going to tighten.
“2023 = credit crunch = recession,” wrote the team of BofA Global Research strategist Michael Hartnett in their signature shorthand. “Banking crises are followed by tighter lending standards (they have been getting tighter in recent quarters) and lower risk appetite.”
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