Monday, September 8, 2008

The banks have simply stopped lending

The world depends on the two Fs

If Freddie and Fannie had been allowed to go under, what we have seen of the credit crunch thus far would have been a mere prelude to a much more profound slump - one comparable to the Great Depression of the 1930s, the last time the banks simply stopped lending. Global financial turmoil would have been the beginning of it.

Posted by gardeniadotnet @ 01:37 AM (842 views)
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4 thoughts on “The banks have simply stopped lending

  • Food and Freedom mate, not much else

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  • it_is_going_with_a_bang says:

    I don’t know why the phrase “stopped lending” is being used so much. If you want a mortgage you can have one. Provided you can show that you can afford it and the property is worth what you say it is.
    The only thing I would say has slowed and hopefully stopped is “irresponsible lending”.

    The US government has about as much chance of completely controlling house prices as it does controlling the streets of Iraq.
    Could you imagine them letting the FFs crash during the presidential election. Not likely.

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  • Does this mean a vast majority of the housing market in the US is now government owned and not private ?

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