Credit tightening

A couple of stories in the FT point towards some tightening in the credit market. The first looks at a general tightening of credit condition while the second concentrates on the Spanish market. The spread of this caution could cause a moderation in business activity in the coming months. However, with abundant global liquidity this is not likley to be sufficient to affect the whole economy. More important will probably be the reaction of consumer spending in developed countries to the increase in domestic interest rtaes that is taking place.