No further bail-outs to banks unless credit flows again

ONQ

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Joined
May 27, 2009
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Our terrible banks have ruined profitable and viable businesses this past year by not lending money to them - by my estimation [anecdotal comment from one bank] one in ten loans were approved.

The mandarins at central office knew the extent of their own lies it seems and the likely effect on the economy.

People in good jobs and in viable businesses couldn't get loans for relatively small extensions [say 50K], even though they were and remain in gainful employment.

By reducing available credit from a torrent to a drip the banks destroyed the hope of any recovery in Q3 2010.

If we are serious about our economy recovering from where we are, we need to make sure that any further lending to the banks is conditional on credit flowing again.

Pumping money into institutions that cannot extend the necessary credit to a modern private sector business environment is pointless.

ONQ.
 


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