I got this email from a long-time AFM reader earlier this afternoon (modified slightly to protect anonymity):
Through a reliable source, I was told that there is a strong potential for a credit freeze come January 2009. According to this source, absolutely NO loans will be granted…for anything (mortgages, vehicles or otherwise). Although I would appreciate you not listing the bank’s name [which I deleted], I thought this may be an interesting ‘what if’ scenerio for you to write about. I don’t have any other details, but thought you’d get a kick out of the topic and possibly want to dig a little deeper into the idea of a 100% credit freeze.
I followed up with this reader to see if I might be able to interview the source anonymously and this was the reader’s response:
As for the guy I spoke with, he won’t talk to you – nothing personal. It was a social situation when we spoke, but he wasn’t exactly open to comment. I tried (on your behalf, of course). He just said that if anyone needs a loan, they needed to get it within the next 90 days – or they won’t get one at all. I assume he was speaking of things going on with his bank, but you never know.
Interesting. Possible? Maybe so. But, I can’t imagine it lasting for any length of time. But, you never know…
What do you guys think? Anyone with any authority out there want to offer up an opinion?
Oh, and for what it’s worth, I trust the reader who sent me this information.