Subprime Slime's Halo Effect
Since the markets got collectively nervous about the rising risk of defaults in the credit markets about three weeks ago, every pundit in the land has been wondering how far the contagion will spread. It's still too soon to know, but that doesn't keep everyone from speculating--and repricing risk in the meantime. Thanks largely to the fact that banks and mortgage brokers granted loans to just about anyone who could put an "X" in the signature blank (Documentation? We don't need no stinking documentation!), other borrowers--even those with stellar credit--have been painted with a broad brush.