Credit markets are in turmoil in the USA, and somesay the fallout could dramatically cut back mergers and acquisitions as well as non-residential construction activity in 2008. Credit is harder to come by because banks are hemmed in by losses and tryingto get their books in order, analysts said. Simply put, if a bank loses 10 billion dollars (as Citigroup did in the fourth quarter), it has less to lend, one analyst pointed out. That means many financial institutions and investors will probably be less willing to take risks on financing new acquisitions, steel mills, aluminium smelters or mining projects.
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