Credit squeeze could cause some ripples in local market

Sub-prime meltdown in the US will ultimately affect the cost of borrowing and the ability to do so in Thailand because a lot of funds that flow into this market come from institutions in US and some of them have been affected, says Nigel Cornick, the CEO of Raimon Land Plc. Financial institutions' general risk awareness increases when there is talk of mortgage defaults, repossession and price slumps, ''so those things tend to spread even though [the real impact] may be confined to America'', he says.