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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Louis V. Lambrecht who wrote (7453)	11/21/2006 6:30:10 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Hi Louis, If the credit environment deteriorates then funding and financing costs go up and some of the deals that are on the margin go negative cash flow. Especially if asset prices start to decline. The global credit environment has been pretty darn friendly. Two markets that are very much at the margin and have been acting up again is Saudi Stock Market and the Icelandic Currency Market. Those two both started acting up last February and it will be interesting to see if the renewal of Risk Concerns in these two "canary" in the coal mine markets will again portend problems for the broader equity, debt and some currency markets in 2007.