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alstry (35.44)

To whom are banks lending $$$$$$$$$$$$$$$$$$

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June 23, 2008 – Comments (4)

Airlines....nope they are shrinking and selling assets

Auto.....they are shutting down  plants  and selling assets

Builders.....not a chance, they are liquidating assets as banks cut  LOCs

Condos.....just go to Mish's Blog tonight for the leaning tower of Padre or decades of inventory in Miami

Consumers.....Ha Ha  they are cutting off HELOCs and credit card limits

Municipalities....not much as the revenues are evaporating and barely covering current  debt

Restaurants....have you looked around your area and seem how many have shut down recently

Retailers....after Steve and Barry's debacle......you think a little gun shy????

Land Developers.....at  pennies on the dollar....are you nuts

Yacht Manufacturers....I am aware of five newer yachts you could steal tomorrow

So there we have it, a large segment of consumers, business, and government is no longer borrowing money.

Most everyone else doesn't really need to borrow much.....maybe that is why the banks are letting so many go?

Now you see why I think the banking system could reduce 50% of its total  capacity and still adaquately serve its customers' needs.  50%?????  That is a lot of buildings and bankers.

4 Comments – Post Your Own

#1) On June 23, 2008 at 11:03 PM, EverydayInvestor (< 20) wrote:

But credit card debt is up ... so banks are obviously lending more there. I agree with your general point. Bankers are now more common than crullers (why I thought of that I do not know). Perhaps we should eat them as we do with crullers ... that would get us down to a manageable number.

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#2) On June 23, 2008 at 11:23 PM, alstry (35.44) wrote:

Yes, credit card debt is currently going up...and it is the creation of new debt that kept us going....but credit availability is being curtailed in every direction.....thus looking forward things look down.....for now.

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#3) On June 24, 2008 at 1:01 AM, garyb52 (< 20) wrote:

I have excellent credit, and used to get those unsolicited offers in the mail for a new credit card. You know, "you're pre-approved" and all that. I would get several of them every week.

Some finance companies used to send me checks for several thousand dollars, totally unsolicited, made out in my name and ready to cash. Of course, cashing them would mean I was accepting the check as a loan at 22% interest!  

Now, none! I haven't received any kind of offer in over a month. 

And many of the finer restaurants here in Los Angeles are almost empty some nights. The malls are crowded with people trying to escape the heat, but I hear that few are buying anything. The movie theaters are still bringing them in, however. Crowded as ever. Go figure!

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#4) On June 24, 2008 at 3:08 AM, hansthered0 (< 20) wrote:

It's true Gary,

 They have two things that consumers want and love....animated pandas and junk food. YAY!

Oh and Coke....everyone loves Coke. Especially Warren Buffet.

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