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

[hvactec]

[ame=http://www.youtube.com/watch?v=4PT2EKWDuQ8]YouTube - Donald Trump: Banks not lending or don't want to lend[/ame]

 

[CMike]

That is a very big probem.

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

 

[jillian]

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.

 

[Paulie]

Of course they're not lending money... they need it to give themselves huge bonuses for almost destroying the world economy.

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.

 

[CMike]

Of course they're not lending money... they need it to give themselves huge bonuses for almost destroying the world economy.

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.

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.

 

[Paulie]

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.

 

[uscitizen]

And who is trying to borrow money right now that has good credit?
Perhaps the banks are not lending because no one is borrowing?

 

[hvactec]

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.

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

 

[goldcatt]

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.

 

[Paulie]

And who is trying to borrow money right now that has good credit?
Perhaps the banks are not lending because no one is borrowing?

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.

 

[uscitizen]

And who is trying to borrow money right now that has good credit?
Perhaps the banks are not lending because no one is borrowing?

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.

And building a casino in the midst of a recession is a good investment?
Isn't this more of the same building boom that helped create this mess?
Are we talking venture capital or loans secured with colateral property?

 

[Paulie]

And who is trying to borrow money right now that has good credit?
Perhaps the banks are not lending because no one is borrowing?

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.

And building a casino in the midst of a recession is a good investment?
Isn't this more of the same building boom that helped create this mess?
Are we talking venture capital or loans secured with colateral property?

I don't know the terms of the loans being requested, but you asked who was asking for financing that had good credit, so I answered with an example.

 

[uscitizen]

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.

And building a casino in the midst of a recession is a good investment?
Isn't this more of the same building boom that helped create this mess?
Are we talking venture capital or loans secured with colateral property?

I don't know the terms of the loans being requested, but you asked who was asking for financing that had good credit, so I answered with an example.

Good credit is one thing a viable business plan is another.
Banks actually used to be checkpoints on the viability of business projects.
Perhaps we can get back to that.

 

[uscitizen]

Atlantic City shows gambling isn't recession-proof
Jon Hurdle
ATLANTIC CITY, New Jersey
Sun Mar 15, 2009 8:46am EDT A view from the boardwalk of several casinos in Atlantic City, New Jersey, March 14, 2009.

Credit: Reuters/Tim Shaffer

ATLANTIC CITY, New Jersey (Reuters) - In the 20 years he's worked on the Atlantic City boardwalk, Joe Lochs has never seen business this bad.

U.S.

Lochs, 54, makes his living giving rides to casino patrons in a "rolling chair," a three-wheeled, wicker-sided buggy that he pushes up and down the boardwalk between casinos, shops and restaurants.

In good times, he can make $1,000 a week but since the beginning of winter, business is off by around 60 percent, and some days, there is no work at all.

Business at Atlantic City's 11 casinos is falling at a record pace. Aggregate revenue plunged 19.2 percent in February from a year earlier, the sharpest decline in the 30 years since gambling was legalized in the city, according to the New Jersey Casino Control Commission.

"Before this year, I never had a day without a single ride," Lochs said, rolling a cigarette outside the bankrupt Trump Plaza casino. "This year, I've had three of them."

Nearby, six of Lochs' competitors dozed in their chairs as potential clients strolled by in the late-winter sunshine.

Like everyone else in New Jersey's gambling capital, Lochs has been hit by the contracting national economy and by increased competition from a growing gaming industry in surrounding states, particularly neighboring Pennsylvania, where casinos allow slot machines but not table games.

"We no longer have this total monopoly on the market," Lochs said.

DRIVE TO DIVERSIFY

Along the Atlantic City Expressway, Pinnacle Entertainment ran tongue-in-cheek billboard ads that said "You know what this town needs? Another casino."

These days, it's no joke.

Three of the city's casinos, those operated by Trump Entertainment, are in bankruptcy following a court filing by Trump on February 17. Two new resorts planned by Pinnacle and MGM Mirage have been scrapped because financing is unavailable in the tight credit market.

On March 6, Pinnacle said it was seeking a buyer for the beachfront land where it had hoped to build a $1.5 billion resort.

Revel Entertainment is moving ahead with plans to build a $2 billion resort but the project has been delayed because of difficulty securing financing.

Michael Pollock, managing director of consulting firm Spectrum Gaming Group, said Atlantic City was experiencing an unprecedented downturn but that doesn't mean its fortunes won't improve.

Projects like Revel, which combine gambling, entertainment and hotel accommodation, are crucial to Atlantic City's future, Pollock said. That formula has been followed by the city's newest resort, the Borgata, which has fared better than its competitors.

Even after the economy recovers, some of Atlantic City's traditional visitors will be lost permanently to other states, Pollock said. But development that attracts people other than gamblers could help restore the city's fortunes.

Jeff Vasser, president of the Atlantic City Convention & Visitors Authority, said the city is adding restaurants, spas and entertainment venues to diversify its economic base.

Atlantic City shows gambling isn't recession-proof | Reuters