Comments on: Are Banks Still Lending? http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Mon, 15 Mar 2010 18:48:04 +0000 http://wordpress.org/?v=2.3.1 By: Jose http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2572 Jose Fri, 27 Mar 2009 00:24:54 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2572 I agree with you, this government came out with the tax incentive to help us to afford our first home buying, me credit score is above nations average and have a 5 yr very steady job in a large corporation, i have saved 7500 dollars to help with closing and down payments and have a salary of over 30 grand a yr, i had a contract on a prop. for 80 grand but i had been denied credit for a home loan even by my own banks which i had been loyal and conducted business for many years. My Advice to all of us, if they don't want to lend in a good manner, they will in a forcefully manner, as of tomorrow I'll be withdrawing all my funds and canceling all my banking relationships with those to banks ( BOA and Wachovia ) and put my money in a overseas bank or a small community bank. am very feed up with the way large corporations has been conducting their businesses lately. I had high hopes of accomplishing everybodies dreams of owning a roof over our heads but that dream seems to be fading away because of the banks not letting their bailout money out to help with the situation. balance their sheets my buttocks, they just want the money to keep paying bonuses to theyr CEO's, CFO's and and many other CO's. my gosh ! Middle Class Uprising is coming your way sooner or later ! I agree with you, this government came out with the tax incentive to help us to afford our first home buying, me credit score is above nations average and have a 5 yr very steady job in a large corporation, i have saved 7500 dollars to help with closing and down payments and have a salary of over 30 grand a yr, i had a contract on a prop. for 80 grand but i had been denied credit for a home loan even by my own banks which i had been loyal and conducted business for many years.

My Advice to all of us, if they don’t want to lend in a good manner, they will in a forcefully manner, as of tomorrow I’ll be withdrawing all my funds and canceling all my banking relationships with those to banks ( BOA and Wachovia ) and put my money in a overseas bank or a small community bank. am very feed up with the way large corporations has been conducting their businesses lately. I had high hopes of accomplishing everybodies dreams of owning a roof over our heads but that dream seems to be fading away because of the banks not letting their bailout money out to help with the situation. balance their sheets my buttocks, they just want the money to keep paying bonuses to theyr CEO’s, CFO’s and and many other CO’s. my gosh !

Middle Class Uprising is coming your way sooner or later !

]]> By: Tamara http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2328 Tamara Wed, 28 Jan 2009 19:00:05 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2328 Something is surely wrong....I remember in the seventies and eighties, interest rates being high, but still available to ALL credit situations..... Better score better rate.....Low score....higher rate....not a complete turn down. Some banks need to take charge.....and actually start doing the right thing. make sure you find the right banks is a good start. You can find higher rated banks that NEVER advertise.....you probably don't even know they are there. Rate you bank..... http://www.thestreet.com/screener/index.html?src=ratingsindex&tab=3 Sound like the Cloward-Piven strategy not only worked but is still in play and ticking along smoothly. Something is surely wrong….I remember in the seventies and eighties, interest rates being high, but still available to ALL credit situations…..

Better score better rate…..Low score….higher rate….not a complete turn down.

Some banks need to take charge…..and actually start doing the right thing.

make sure you find the right banks is a good start. You can find higher rated banks that NEVER advertise…..you probably don’t even know they are there. Rate you bank…..

http://www.thestreet.com/screener/index.html?src=ratingsindex&tab=3

Sound like the Cloward-Piven strategy not only worked but is still in play and ticking along smoothly.

]]> By: sonny chat http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2281 sonny chat Fri, 16 Jan 2009 01:00:00 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-2281 Bank Of America belongs on this list, and yes Chase too. These guys got funds from the bailout package, but not spreading the money to businesses that are in dire need of funds. Chase actually offered to turn my business line of credit into a term loan. BOA won't even talk about extending the lines. Any ideas???? Bank Of America belongs on this list, and yes Chase too. These guys got funds from the bailout package, but not spreading the money to businesses that are in dire need of funds. Chase actually offered to turn my business line of credit into a term loan. BOA won’t even talk about extending the lines. Any ideas????

]]> By: Rob Herrera http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1760 Rob Herrera Wed, 05 Nov 2008 14:57:25 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1760 Folks: I will give a REAL view of credit, as someone who worked in credit markets for over 12 years and now is an entrepreneur running a company with an exceptional (over 80 Paydex D&B) credit rating. We have a legacy line of credit. Given our healthy cash flow and credit rating, we initially acquired that line fairly easily. YESTERDAY (Nov 4th), I went to the bank to expand the line of credit. We did not need to expand it, just thought it would be the right thing to do. I was BOMBARDED with requirements and a voluminous amount of documentation. The response was that "requirements from above, due to the subprime issue" created this new "policy". REMEMBER, WE JUST WANTED TO EXPAND OUR CURRENT LINE, NOT ESTABLISH A NEW ONE. ALSO, WE ARE A BUSINESS WITH IMPECABLE CREDIT AND SOLID CASH FLOW. Banks have many ways to stop lending. One way is to simply say no. The other one is to encumber the process with bureaucracy so people simply give up. We are a successful business. The line of credit is to expand and create employment. The philosophy of the credit aid plan is not being followed. FOLKS: The doors are closed at Chase. We should feel compelled to name the institutions that are receiving such aid and placing barriers on lending. If there is any Folks:

I will give a REAL view of credit, as someone who worked in credit markets for over 12 years and now is an entrepreneur running a company with an exceptional (over 80 Paydex D&B) credit rating.

We have a legacy line of credit. Given our healthy cash flow and credit rating, we initially acquired that line fairly easily.

YESTERDAY (Nov 4th), I went to the bank to expand the line of credit. We did not need to expand it, just thought it would be the right thing to do.

I was BOMBARDED with requirements and a voluminous amount of documentation. The response was that “requirements from above, due to the subprime issue” created this new “policy”. REMEMBER, WE JUST WANTED TO EXPAND OUR CURRENT LINE, NOT ESTABLISH A NEW ONE.
ALSO, WE ARE A BUSINESS WITH IMPECABLE CREDIT AND SOLID CASH FLOW.

Banks have many ways to stop lending. One way is to simply say no. The
other one is to encumber the process with bureaucracy so people simply give up.

We are a successful business. The line of credit is to expand and create employment. The philosophy of the credit aid plan is not being followed.

FOLKS: The doors are closed at Chase. We should feel compelled to name the institutions that are receiving such aid and placing barriers on lending. If there is any

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1562 Kurt Brouwer Wed, 01 Oct 2008 22:54:34 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1562 I'm not trying to make the claim that everything is hunky dory with large commercial banks, but rather I am pointing out that credit has not dried up for commercial and industrial or even consumer borrowers, at least through the timer periods shown. One argument for the bailout -- or rescue plan -- or whatever you want to call it, is that the liquidity crunch is going to hurt businesses. Well, based on these charts, business lending was pretty healthy through August - September 2008. That does not mean it will stay that way, but the widespread credit crisis for businesses or consumers is not apparent from this data. The LIBOR spreads reflects inter-bank insecurity. They are not comfortable lending to each other due to fears of all the bad assets on the balance sheets. The LIBOR spread spiked on Monday and then came back down quite a bit. It's still very high, but that reflects fear and loathing by and among banks. The rate of change for the lending as illustrated by these charts may be tenuous, but that is precisely my point. Most of us would have thought they had weakened long ago, but banks were still lending at robust levels at least through August - September. I’m not trying to make the claim that everything is hunky dory with large commercial banks, but rather I am pointing out that credit has not dried up for commercial and industrial or even consumer borrowers, at least through the timer periods shown.

One argument for the bailout — or rescue plan — or whatever you want to call it, is that the liquidity crunch is going to hurt businesses. Well, based on these charts, business lending was pretty healthy through August - September 2008. That does not mean it will stay that way, but the widespread credit crisis for businesses or consumers is not apparent from this data.

The LIBOR spreads reflects inter-bank insecurity. They are not comfortable lending to each other due to fears of all the bad assets on the balance sheets. The LIBOR spread spiked on Monday and then came back down quite a bit. It’s still very high, but that reflects fear and loathing by and among banks.

The rate of change for the lending as illustrated by these charts may be tenuous, but that is precisely my point. Most of us would have thought they had weakened long ago, but banks were still lending at robust levels at least through August - September.

]]> By: A Stoner http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1559 A Stoner Wed, 01 Oct 2008 17:36:00 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1559 The reason for leveling off is more likely due to the fact that lending was increasing significantly faster than that of GDP, you cannot have unlimited unfettered spending at rates exceeding the capacity of production long before you have problems. Having a correction at some point in time is healthy. When you refuse to allow the economy to readjust downward after a long period of growth in areas things such as inflation happen, which is what happened in the housing market. Houses went up 5 times the rate of inflation and wages for 7 years running, now it is time to let the market bring houses back into line with what people can really afford. The reason for leveling off is more likely due to the fact that lending was increasing significantly faster than that of GDP, you cannot have unlimited unfettered spending at rates exceeding the capacity of production long before you have problems. Having a correction at some point in time is healthy. When you refuse to allow the economy to readjust downward after a long period of growth in areas things such as inflation happen, which is what happened in the housing market. Houses went up 5 times the rate of inflation and wages for 7 years running, now it is time to let the market bring houses back into line with what people can really afford.

]]> By: A Tale of Oprah’s Mama and the Credit…Kinda Like the Bailout and the Taxpayer « Mcnorman’s Weblog http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1558 A Tale of Oprah’s Mama and the Credit…Kinda Like the Bailout and the Taxpayer « Mcnorman’s Weblog Wed, 01 Oct 2008 16:36:04 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1558 [...] Ms. O is probably more than tired of having to pay for all of mama’s debts, if she does.?  Banks are still lending, but they aren’t lending to those with bad [...] […] Ms. O is probably more than tired of having to pay for all of mama’s debts, if she does.?  Banks are still lending, but they aren’t lending to those with bad […]

]]> By: Penelope http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1556 Penelope Wed, 01 Oct 2008 15:37:00 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1556 The second derivative (the change in the rate of change) looks horrible for two of those charts. Also, that's an extremely limited viewpoint in a sea of data. For example, what is the demand for C&I loans now that other sources such as the bond market have dried up? Kurt, what's your take on the dramatic spike in LIBOR? The second derivative (the change in the rate of change) looks horrible for two of those charts.

Also, that’s an extremely limited viewpoint in a sea of data. For example, what is the demand for C&I loans now that other sources such as the bond market have dried up?

Kurt, what’s your take on the dramatic spike in LIBOR?

]]> By: Michelle Malkin » Read the Senate bailout bill here http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1552 Michelle Malkin » Read the Senate bailout bill here Wed, 01 Oct 2008 14:25:48 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1552 [...] (Link) [...] […] (Link) […]

]]> By: 59841729kgytil http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1544 59841729kgytil Wed, 01 Oct 2008 06:18:12 +0000 http://www.fundmasteryblog.com/2008/09/30/are-banks-still-lending/#comment-1544 The first and third graphs show a marked leveling off of lending that started last march. Is this significant? What do the graphs look like extended through the past several years or decades? If you have consistent growth over time and then growth stops that can have significant meaning. 0 growth or diminished growth over a significant amount of time can be just as meaningful as negative growth. What is the difference for example if the economy grows at .000001 % rather than -.000001%? The first and third graphs show a marked leveling off of lending that started last march. Is this significant? What do the graphs look like extended through the past several years or decades? If you have consistent growth over time and then growth stops that can have significant meaning. 0 growth or diminished growth over a significant amount of time can be just as meaningful as negative growth. What is the difference for example if the economy grows at .000001 % rather than -.000001%?

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