Where are we in the credit crisis? How much longer will it last? People have taken to using baseball terms. Some see the trouble as almost over. Weâ€™re in the seventh inning, says an investment bank executive. Others argue we have a long way to go. Itâ€™s only the second inning, says a distressed debt fund manager.
What if there are extra innings? A Boston Red Sox-Chicago White Sox game in July 2006 went on for19 innings. Translated to the sequel of credit tightening and debt unwinding, that might mean years.
Â Letâ€™s take the range of estimates and calculate their average.Â It comes out to the bottom of the fourth inning. Get yourself a beer and relax.