FDIC Reports Biggest Drop for Business Loans on Record!!!!!!!!!! | |
ANNONYMOUS User ID: 825313 United States 11/28/2009 08:44 PM Report Abusive Post Report Copyright Violation | |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 08:48 PM Report Abusive Post Report Copyright Violation | For a good read! Thank You "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Anonymous Coward User ID: 743646 United States 11/28/2009 08:52 PM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 503157 United States 11/28/2009 08:52 PM Report Abusive Post Report Copyright Violation | U.S. banks are earning money again, but they're writing fewer business loans, threatening a fragile economic recovery. Quoting: CyndexiaThe Federal Deposit Insurance Corp. reported Tuesday that U.S. bank loans fell by $210.4 billion or 2.8% during the third quarter – the biggest drop since the FDIC started keeping records in 1984. Banks booked $2.8 billion in third-quarter profits, reversing a second-quarter loss of $4.3 billion. "We need to see banks making more loans to their business customers," says FDIC Chairman Sheila Bair. "This is especially true for small businesses." Loans to businesses fell 6.5%, and real estate loans plummeted 8.1%. "Until small businesses are able to borrow, we can't have a robust economy, because that's your largest source of jobs," says Richard Posner, a law professor at the University of Chicago and a federal circuit judge. The Small Business Administration has said that small businesses created 64% of new jobs in the past 15 years. Banks are reluctant to make new loans until they've cleared off the bad ones they made during the housing boom. Back then, they paid "insufficient attention to certain kinds of risky loans," says Edward Kane, finance professor at Boston College. "You can't expect them to turn around and turn the lending machine back on." Non-current loans rose more than 10% during the quarter to $366.6 billion or nearly 5% of all loans, the highest rate on record. Banks charged off nearly $51 billion in bad loans last quarter, the 11th straight quarterly increase and up more than 80% from a year earlier. "Loan losses will continue to climb as long as foreclosures keep rising and homeowners, builders and developers continue to hurt," says Kate Monahan, banking analyst at Aite Group. Banks don't expect things to get better anytime soon: Two out of three banks set aside more reserves for losses during the quarter, reserving a total of $62.5 billion, 22% higher than last year. Banks are hoarding money in super-safe Treasury securities, and, "Businesses were not as eager to take on debt," says FDIC chief economist Richard Brown. [link to www.usatoday.com] Thanks for the report. also saved your statment "Sometimes the object of the Journey may not be the end, but the Journey itself" Cyndexia on my PC. very true........... |
Anonymous Coward User ID: 829394 United States 11/28/2009 08:55 PM Report Abusive Post Report Copyright Violation | |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 09:00 PM Report Abusive Post Report Copyright Violation | Thanks for the report. Quoting: Anonymous Coward 503157also saved your statment "Sometimes the object of the Journey may not be the end, but the Journey itself" Cyndexia on my PC. very true........... Your Very Welcome and pass along the Statement.... "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 09:02 PM Report Abusive Post Report Copyright Violation | Why lend money? Quoting: Anonymous Coward 743646The Fed is paying these banks interst to sit on it. If they wanted the banks to lend they would not give them incentive to hold it. Complete proof this is by design. You have hit the nail on the head.... I thought this too when I read this article. America has always flourished with the small business owners. Now we will all work for the government.... Very Sad "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Anonymous Coward User ID: 829405 United States 11/28/2009 09:04 PM Report Abusive Post Report Copyright Violation | Why lend money? Quoting: Anonymous Coward 743646The Fed is paying these banks interst to sit on it. If they wanted the banks to lend they would not give them incentive to hold it. Complete proof this is by design. Yep. The Fed 'loans' banks billions at zero percent interest. Then the banks 'buy' Treasuries that pay 2-3%. Nothing but profit. No risk. The US gov't gets buyers for debt. The farce continues. |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 09:07 PM Report Abusive Post Report Copyright Violation | Why lend money? Quoting: Anonymous Coward 829405The Fed is paying these banks interst to sit on it. If they wanted the banks to lend they would not give them incentive to hold it. Complete proof this is by design. Yep. The Fed 'loans' banks billions at zero percent interest. Then the banks 'buy' Treasuries that pay 2-3%. Nothing but profit. No risk. The US gov't gets buyers for debt. The farce continues. It has been rumored in the Real Estate community (yes I am an agent) that the Feds will open the loan doors again for homes the same way that they did before the bust happened. There intention is to jump start the Real Estate boom again before the 2012 election for Obama. So that his Looking Good Looks Good...... Problem is 5 years from now this shit that happened now will look like a picnic at the park compared to the damages we will see ahead..... "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Anonymous Coward User ID: 793891 United States 11/28/2009 09:12 PM Report Abusive Post Report Copyright Violation | All the banks are setting around the poker table called the stock market. Playing with our (bailout) money and we are left outside looking through the window. There is going to be a day in America when you won't want to be a banker. |
Anonymous Coward User ID: 743646 United States 11/28/2009 09:12 PM Report Abusive Post Report Copyright Violation | Why lend money? Quoting: Anonymous Coward 829405The Fed is paying these banks interst to sit on it. If they wanted the banks to lend they would not give them incentive to hold it. Complete proof this is by design. Yep. The Fed 'loans' banks billions at zero percent interest. Then the banks 'buy' Treasuries that pay 2-3%. Nothing but profit. No risk. The US gov't gets buyers for debt. The farce continues. When I try to explain this mess to my sheeple friends/family this is the point I stress. Simple and easy to understand. |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 09:17 PM Report Abusive Post Report Copyright Violation | All the banks are setting around the poker table called the stock market. Playing with our (bailout) money and we are left outside looking through the window. There is going to be a day in America when you won't want to be a banker. Quoting: Anonymous Coward 793891"Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 10:14 PM Report Abusive Post Report Copyright Violation | At the same time, GOVERNMENT LOANS, aka debt, has increased by unlimited amounts! Quoting: Anonymous Coward 829394"Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Dirtfarmer User ID: 810526 United States 11/28/2009 10:30 PM Report Abusive Post Report Copyright Violation | Another good reason if you are a small business owner to operate with cash, and not rely on credit. How fortunate for governments that the people they administer don't think. Adolf Hitler When the government fears the people there is liberty; when the people fear the government there is tyranny. Thomas Jefferson "Expose yourself to your deepest fear; after that, fear has no power, and the fear of freedom shrinks and vanishes. You are free." Jim Morrison |
Cyndexia (OP) User ID: 744081 Puerto Rico 11/28/2009 10:44 PM Report Abusive Post Report Copyright Violation | Another good reason if you are a small business owner to operate with cash, and not rely on credit. Quoting: DirtfarmerI agree with that..... But the bankers made so much money off the backs of the small business owner with credit that the business owners became reliant on loans to get them thru the tough times. "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |
Cyndexia (OP) User ID: 798649 United States 11/30/2009 11:59 AM Report Abusive Post Report Copyright Violation | "Sometimes the object of the Journey may not be the end, but the Journey itself" :2013: Email: [email protected] :) |