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