Sunday, October 17, 2010
Why banks are not lending?
Liquidity v money supply/demand
Really good, succinct explanation why banks are not lending.
5 thoughts on “Why banks are not lending?”
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mark says:
they dont have any money…
ant says:
indeed. prospective lenders to lend and borrowers to repay (in the latter case it is actually an assessment of the prospect of making money)
Smuggy Dogg Dogg says:
Yet another poor article from Pytel, not sure why he doesnt give up on finance and try to find something he understands!!
alan_540 says:
So basically he’s saying the banks haven’t got enough money to loan and borrowers haven’t got the money to pay back loans.
Deep man.
ant says:
@alan_540: you did not understand, basically he is saying that the money multiplier is too high and what you are saying is a result. Small difference that you missed. Just slightly deeper than you thought;-)