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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: martin001 who wrote (109456)	6/20/2001 1:23:40 PM
From: GraceZ	Read Replies (2) \| Respond to of 436258

Banks tend to tighten standards when their portfolios start to go south. The problem is that they almost always close the barn door after the horse is gone. So they make it difficult for the remaining healthy businesses to borrow money as they write off the bad loans to those that would have failed no matter how much you lent them. The spread between the FF rate and Prime is actually quite high indicating reluctance on the part of the banks to lend out the money that the feds are making available.