Banks Get Frugal As Well in 2009 - Go Local For Funding
OMG-OCUP-300 The great swindle, err, bailout of 2008 is supposedly recapitalizing banks so that the credit crunch will pass. Well, the less than shocking news is 2008 has seen no let up in the credit crisis and banks are going to be just as frugal when it comes to giving out money in 2009.
1Z0-895 Your average bank is looking out for number one - itself. This is the nature of capitalism and always has been. For some reason, the pundits and media seem to think that financial institutions have a moral obligation to loan money out to us needy citizens. Well, they don't. Banks are in it for the banks and any suggestion to the opposite effect is so much hot air.
This fact is being born out as we watch the greatest theft in history, the $700 billion bailout put into action. The federal government has been putting money into banks, even if technically it is not part of the bailout, and seeing some fairly disappointing results. Why? The banks are taking the money and holding on to it! Who needs more bad loans? Even if the banks want to lend, who would possibly give a loan in markets where prices are dropping? Nobody.
PMI-001 The federal government and Paulson, the ultimate financial industry insider, seem to be surprised to find this is the case. With $150 billion already in AIG and up to $300 billion being spent on keeping Citigroup afloat, the money is going fast and it isn't making a bit of difference.
If you are looking for financing in 2009, the major banks are going to be difficult targets. The cliché about getting blood from a turnip comes to mind. Will they be issuing some loans? Of course, but the numbers will be very small. Instead, money will be allocated to getting the old bottom line in better condition and possibly buying up other banks in trouble. Ah, your tax money at work.
To find financing in 2009, you are going to be better off looking to local banks that did not drink the cool aid regarding the housing market. You can find them pretty easily. Many are now doing advertising where they mention their bad loan portfolio is less than one percent or some such thing. For these banks, it is business as usual and you can get financing.
2009 is a new year on the calendar, but it is lining up to be more of the same in the financial industry. Don't waste your time dealing with national institutions. Go local, that's where you'll find banks unafraid to do business.
1Z0-895 Your average bank is looking out for number one - itself. This is the nature of capitalism and always has been. For some reason, the pundits and media seem to think that financial institutions have a moral obligation to loan money out to us needy citizens. Well, they don't. Banks are in it for the banks and any suggestion to the opposite effect is so much hot air.
This fact is being born out as we watch the greatest theft in history, the $700 billion bailout put into action. The federal government has been putting money into banks, even if technically it is not part of the bailout, and seeing some fairly disappointing results. Why? The banks are taking the money and holding on to it! Who needs more bad loans? Even if the banks want to lend, who would possibly give a loan in markets where prices are dropping? Nobody.
PMI-001 The federal government and Paulson, the ultimate financial industry insider, seem to be surprised to find this is the case. With $150 billion already in AIG and up to $300 billion being spent on keeping Citigroup afloat, the money is going fast and it isn't making a bit of difference.
If you are looking for financing in 2009, the major banks are going to be difficult targets. The cliché about getting blood from a turnip comes to mind. Will they be issuing some loans? Of course, but the numbers will be very small. Instead, money will be allocated to getting the old bottom line in better condition and possibly buying up other banks in trouble. Ah, your tax money at work.
To find financing in 2009, you are going to be better off looking to local banks that did not drink the cool aid regarding the housing market. You can find them pretty easily. Many are now doing advertising where they mention their bad loan portfolio is less than one percent or some such thing. For these banks, it is business as usual and you can get financing.
2009 is a new year on the calendar, but it is lining up to be more of the same in the financial industry. Don't waste your time dealing with national institutions. Go local, that's where you'll find banks unafraid to do business.
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