Donald Trump: Banks not lending or don't want to lend

Discussion in 'Economy' started by hvactec, Feb 24, 2010.

  1. hvactec
    Offline

    hvactec VIP Member

    Joined:
    Jan 17, 2010
    Messages:
    1,315
    Thanks Received:
    106
    Trophy Points:
    83
    Location:
    New Jersey
    Ratings:
    +132
    [ame=http://www.youtube.com/watch?v=4PT2EKWDuQ8]YouTube - Donald Trump: Banks not lending or don't want to lend[/ame]
     
  2. CMike
    Offline

    CMike Zionist, proud to be

    Joined:
    Oct 25, 2009
    Messages:
    8,900
    Thanks Received:
    1,116
    Trophy Points:
    190
    Ratings:
    +1,408
    That is a very big probem.

    The government has scared the shit out of them regarding loaning money.
     
  3. jillian
    Offline

    jillian Princess Supporting Member

    Joined:
    Apr 4, 2006
    Messages:
    69,551
    Thanks Received:
    13,012
    Trophy Points:
    2,220
    Location:
    The Other Side of Paradise
    Ratings:
    +22,427
    Of course they're not lending money... they need it to give themselves huge bonuses for almost destroying the world economy.

    I agree with the people who say go put your money into your community banks until the big boys start lending again.
     
  4. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,483
    Thanks Received:
    4,840
    Trophy Points:
    1,130
    Ratings:
    +15,279
    This is disingenuous jill.

    The big commercial banks are sitting on hundreds of BILLIONS in reserves. To say they aren't lending because they want to pay out bonuses instead is ridiculous. Bonuses are hundreds of millions, and the reserves total hundreds of billions.
     
  5. CMike
    Offline

    CMike Zionist, proud to be

    Joined:
    Oct 25, 2009
    Messages:
    8,900
    Thanks Received:
    1,116
    Trophy Points:
    190
    Ratings:
    +1,408
    I completely agree. It has nothing to do with bonuses.

    It has to do with the government scaring them of taking any risk.

    Any loan is a risk.
     
  6. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,483
    Thanks Received:
    4,840
    Trophy Points:
    1,130
    Ratings:
    +15,279
    I really think most business is going to wait and see if some of the liberal stranglehold is loosened after the mid terms.

    If conservatives take back a decent chunk of seats, expect hiring and business investment to increase; including bank loans.

    This is just my opinion, of course. It will be proven right or wrong after the elections.
     
  7. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    And who is trying to borrow money right now that has good credit?
    Perhaps the banks are not lending because no one is borrowing?
     
  8. hvactec
    Offline

    hvactec VIP Member

    Joined:
    Jan 17, 2010
    Messages:
    1,315
    Thanks Received:
    106
    Trophy Points:
    83
    Location:
    New Jersey
    Ratings:
    +132
    my HVAC Business was wiped out, I can't wait nor could I get a loan on my house, I have very small mortgage of 40k the house and property are worth 250k according to the town yet, I could not refinance.
    Business has been very slow I am forced to fold it up and in a week or two will be going over the road traveling the 48 states driving a tractor trailer.
    I drove years ago and will be doing it again.
    Also there are tons of small business in my area that have folded up.
    These
     
  9. goldcatt
    Offline

    goldcatt Catch me if you can! Supporting Member

    Joined:
    Aug 4, 2009
    Messages:
    10,330
    Thanks Received:
    2,331
    Trophy Points:
    48
    Location:
    CentralPA
    Ratings:
    +2,331
    It's not political - or maybe it is, but it's both parties who created the problem.

    We've all (or mostly) heard about the massive backlog of foreclosures that will likely hit this year. The commercial banks hold the lion's share of that paper and are going to take a big hit when that happens. They know they need their reserves against the size of their potential losses.

    The smaller community banks won't be as affected. Many of them didn't offer exotic products in the first place, or else sold off those accounts to be bundled by the big boys as soon as they were created. They will have some losses due to unemployment, but won't be taking the hit and don't need the reserves in place to cover a worst-case loss scenario. Which is the main reason why the community banks are still lending and the commercial banks are not.
     
  10. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,483
    Thanks Received:
    4,840
    Trophy Points:
    1,130
    Ratings:
    +15,279
    There are a LOT of creditworthy businesses who aren't getting financing.

    Here in Atlantic City, where it's mostly union, the union contractors are not able to get the financing they need to continue projects. There are 2 casinos being built, one is completely stalled in the middle of construction, and the other isn't even starting. The reason? Financing.

    A large percentage of the union labor force around here has been laid off for well over a year straight.
     

Share This Page