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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?


To: Copeland who wrote (32136)6/22/2010 10:26:17 AM
From: DuckTapeSunroof  Read Replies (2) | Respond to of 103300
 
Re: "banks limit their lending when there's zero to negative economic growth."

True.

But that is not currently the case in the US (1st. Q. GNP growth ran at around +4.5%)

However --- I expect that so long as banks can get zero real cost money from the Fed, and clip coupons for Treasury bonds, then they will likely be inclined to reach for this "free, no-risk money" INSTEAD of growing business lending....



To: Copeland who wrote (32136)6/22/2010 10:50:04 AM
From: SGJ2 Recommendations  Respond to of 103300
 
Banks are skittish about lending right now due to the political climate. Making it harder to get approval. Car and home loans are still fairly easy to get provided you have decent credit because the value of the collateral is somewhat predictable and its repossession is systemized.