Law professor Jack Williams of Georgia State University noted that smaller businesses, which are traditionally represented by small firms or solos, are also in distress because
of tightening credit markets and declining retail sales.
Though the liquidity crisis has
tightened credit markets, Southern Company is strong financially and maintains an «A» credit rating, helping to mitigate higher costs of capital.
However, as financing choices have become limited during
this tightened credit market, borrowers may need to shop carefully to find a FHA approved lender with ideal terms
With the falling U.S. home prices,
tightening credit markets, and the general economic uncertainty caused by the subprime lending fiasco, credit card issuers like American Express are facing declining consumer spending as well as the increased likelihood that some customers will be unable to repay their balances.
Thus far, the decline in real estate prices has been linked to everything from the Wall Street crash and
tightening credit markets to lax lending practices by Fannie Mae and Freddie Mac and the resulting low interest rates that contributed to artificial inflation of home prices.
Analysts remain unconvinced of the company's strategy, especially since leveraged buyers have vanished as a result of
the tightened credit market and as leasing activity slows.
But while interest rates remain low, the days of quick, easy financing are over, and
the tightened credit market can make it tough to secure loans for investment properties.
«In terms of loan volume, one must remember that these data results predate the disruptive market activity and
tightened credit markets that took place in September 2008.
Beyond
the tightening credit market, rebounding home values have made it more difficult for some renters to get into the market.