Posted on 02/18/2010 11:27:21 AM PST by blam
They’re afraid of the coming runs and they’re preparing for them as best they can.
This doesn’t exactly seem like it will last, based on the most recent inflation figures. Banks prefer to make money, not watch it evaporate. International Loans in say Asia?
How much of that spike is because of all the business loans that were written off as bad debt, or bought as toxic debt in the financial bailout?
What does the author suggest the banks should do with the cash? Give it back to the government? Pass it out in the form of more bad loans?
.
The coming inflation WILL cut it in half over the next 20 years.
They’re going to eventually need this money to make good on the debt they are hiding in their cooked books.
Exactly. Banks are hoarding cash because of the non-performing loans on their books and it is an easy guaranteed profit borrowing from the Federal Reserve at zero and buying Treasuries earning 3%.
Maybe the hording is just puzzlement over what to do in an Obamao economy. It could also be that fewer legitimate borrowers are asking for loans. People are trying to pay down debt, and ride out the storm.
I would say they know Obama’s policies are a disaster and are preparing for the future.
Maybe no one wants to borrow.
With the current administration’s policies and programs why would a bank lend to anyone? Only ‘stupid’s’ would try to keep up with an ignorant, incompetent, spendthrift, hate America and destroy the Nation group of thugs.
They are watching the ongoing small business failures and don’t want to contribute.
This is NOT bad.
Well, they ain’t hoarding mine. I’m doing that myself. :)
This can’t be true! Why I’ll bet there are at least three Freepers who will explain how they just got a loan for a new car a few days ago and so there is no way banks are hoarding cash!!
At least that was the posts I got when mentioning this a few weeks back.
Oh don’t you worry âbout a thing...the gooberment will make sure none of the money goes to waste....all they have to do is tax it and it will all disappear in no time....
That is exactly what they are doing. Just another shell game at the taxpayer's expense. Oh, and at the expense of qualified people who want to borrow money, which is what banks are supposedly for.
How did they do that?
Two months ago my husband and I tried to borrow money to buy a house. No dice.
We have credit scores in the 800s, no debt, he has been on the job 30+ years and 20% down. Why you ask because he changed jobs (same field) and didn’t have six months of pay stubs for the new job.
The leander did tell me straight out if our scores were in the 600s and we had no down or a small one we could get a loan - per Fanny May and Freddie Mac.
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