Saturday, Aug 08, 2009

Why banks are still not lending?

Greg Pytel: author of the analysis published by the HoC, Treasury Committee: "Financial crisis? It's a pyramid, stupid."

Most likely, the best and most comprehensive explanation why the banks are still not lending to ordinary business and people on a level expected by the public and the government. The analysis is clear and indicates that banks are not start going to start lending more soon, and that the banking system requires thorough overhaul.

Posted by andrewt @ 09:15 PM (540 views) Add Comment

3 Comments

1. stillthinking said...

There does seem to be something suspicious about the way the government harps on about extending credit, because they always present that as an overall increase in lending, rather than keeping companies ticking over.
He puts his case very well. Wonder when home owners are going to twig that there aren't any more mortgages coming...

Saturday, August 8, 2009 11:01PM Report Comment
 

2. devo said...

Wonder when home owners are going to twig that there aren't any more mortgages coming...

The EAs and builders need to twig first - which should be around... about... now.

Saturday, August 8, 2009 11:13PM Report Comment
 

3. Fra Paolo said...

Wouldn't it be fair to say that as long as the banks are NOT lending, the danger of inflation from printing money to shore up the banks' balance sheets is substantially reduced?

Sunday, August 9, 2009 03:30AM Report Comment
 

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