http://dailycapitalist.com/2011/06/23/credit-conditions-in-u-s-banks-still-tight
It is good to be a Big Bank in the USA , but not for the regional or small Banks ..
Credit will remain tight until these bad loans are resolved by either foreclosure or bankruptcy. We are witnessing the result of a money and credit boom created by the Fed. The damage is done on the way up as capital is malinvested into projects people don’t want. The bust is the unwinding of malinvestment and can’t be stopped. The more the Fed and the Administration try to prop up the economy, the longer it will take to repair, and the longer we will experience stagnation and high unemployment.
It is good to be a Big Bank in the USA , but not for the regional or small Banks ..
Credit will remain tight until these bad loans are resolved by either foreclosure or bankruptcy. We are witnessing the result of a money and credit boom created by the Fed. The damage is done on the way up as capital is malinvested into projects people don’t want. The bust is the unwinding of malinvestment and can’t be stopped. The more the Fed and the Administration try to prop up the economy, the longer it will take to repair, and the longer we will experience stagnation and high unemployment.
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