U.S. credit squeeze frays world financial markets | Reuters: "NEW YORK (Reuters) - The unraveling U.S. subprime mortgage market is causing other markets to fray around the edges faster than anyone expected.
As the Federal Reserve convenes for its latest meeting on Tuesday, the corporate credit markets are grinding to a halt. About $90 billion of bonds and nearly $250 billion of loans are still awaiting buyers, several high-profile hedge funds from the U.S. East Coast to Australia have failed, and a major U.S. mortgage lender this week closed its doors.
'All these people saying there is no credit crunch and no economic impact - 'Are you kidding me?'', said Jeffrey Gundlach, chief investment officer at TCW Group in Los Angeles, which manages assets worth $160 billion.
'Ask Goldman if there is no credit crunch, ask Bear Stearns if there is no credit crunch, call up American Home Mortgage and ask them if there is no credit crunch. Come on! It is staring you in the face,' Gundlach added."