Transcripts

"Two Ways to Play" -Kevin Depew of Minyanville

SUZANNE PRATT: Now that credit markets are showing signs of life again, is it time to call an end to the credit crisis? Tonight's "Two Ways to Play" says yes and no. Here's Kevin Depew of Minyanville and Minyanville's Kevin Depew.

KEVIN DEPEW, EXECUTIVE EDITOR, MINYANVILLE.COM: For the first time since the credit crisis began, we are beginning to see signs that it is ending. Credit buyers are finally returning to a market that reached deeply depressed levels and at certain points last year, looked as if it would simply shut down. This improvement is not an arbitrary call. It's rooted in what the credit market itself is saying, namely, that fears of a credit market shutdown were overwrought and that credit buyers, despite being crushed by too much debt only months ago, are now rushing back to the market to embrace it. Someone once said about the great depression, that just when we thought it was over, it was really only beginning, which was true. The awful tragedy of the depression was that whenever things seemed as if they couldn't possibly get any worse, they did. Credit markets have improved. But this is a debt crisis, not a credit crisis and it's rooted in several decades spent over-leveraging our households and businesses that must be fully unwound. What we are seeing is the realization that the market will survive. But the point of recognition and the pain of adjustment lies ahead.