No Chance For A Recovery
(MarketWatch) -- U.S. banks are reducing their lending at the fastest rate on record, tightening the credit squeeze and threatening to leave many otherwise viable businesses unable to borrow money to expand their businesses, meet their payroll or refinance their maturing debts.
According to weekly figures provided by the Federal Reserve, total loans at commercial banks have fallen at a 19% annual rate over the past three months, while loans to businesses have dropped at a 28% annualized pace.
Didn't we just bail out the banks so they would start lending more????? Thank goodness interest rates to citizens are falling due to Benny B's zero interest rate policy.
Wells Fargo to Raise Rates on Most of its Credit Cards up to 3%
When you cut off credit and raise interest rates on an economy that is leveraged as much as the bankers infected America with.....revenues don't slow....revenues evaporate as declining cash flow is forced to service a debt load that is so large it is mathematically impossible to pay back.
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America became dependent on credit extension in order for our economy to survive...when you cut off credit to the economy, you must restructure the existing debt so it doesn't consume all of the cash flow of the nation. As fewer and fewer have cash flow to spend on goods and services, more and more fail.
Kirk Company - Converts to Chapter 7
It is not hard to see what is happening to America....what is difficult is to think it could actually be happening to us....could ALL of America actually decline into deterioration simply because the bankers cut off credit to the nation???? Is it really that simple to destroy the greatest capitalistic nation on earth??? Can Benny B and the bankers really accomplish what Osama Bin Laden only dreamed about???
When a decline of 33% revenues for Alcoa is better than expected....what do you think?
When Auto Industry sales are down over 50% and it is better than expected...what do you think?
When New Home Construction is DOWN 80% and it is better than expected...what do you think?
When unemployment for those between 16-24 is OVER 50%...what do you think?
As savings runs dry paying down debt....more and more will fail and the deterioration will accelerate moving forward as defaults cause more defaults.
When you bail out the banks and not the citizens in an overleveraged economy.....conditions keep getting worse until the economy evaporates and citizens don't have much left....this is the process Alstrynomics calls Zombulation.....and now many are just beginning to feel the symptoms.
And finally this....
Bernanke Says Fed Will Be Ready to Tighten Policy When Economy Improves
My friends....If Bernanke and his banker buddies tighten upon the citizens any further, there will be nothing left to tighten....they should be easing terms as credit extension is evaporating.
Now ask yourself........if credit is tightening at the fastest rate in history......how can the economy improve if the economy was dependent on credit to generate sales?
That is right...it can't...it won't.... and it will eventually shut down upon the burden of trying to service the biggest debt load in human history.
Seriously, as Benny B and his banker buddies are shutting down the American economy and taking over the assets....how hard do you think they are laughing at Fools for thinking things are actually getting better just because they are telling you????
It is strange what can happen to a nation when the educated don't think.....amd some of you actually question my 50% unemployment projection if we maintain the same policies???