Mike Shedlock: Looking for a reason banks aren’t lending? Consider this Picture

Posted by Kendall Harmon

Take a careful look .As Shedlock writes:

Because allowances for loan losses are a direct hit to earnings, and because allowances are at ridiculously low levels, bank earnings (and capitalization ratios) are wildly over-stated....

There are many more reasons banks are not lending including: rising unemployment, rising taxes, uncertainty over health care costs, proposed cap-and-trade costs, increasing consumer frugality, rampant overcapacity, and boomer demographics.




Filed under: * Economics, PoliticsEconomyCorporations/Corporate LifeCredit MarketsPersonal FinanceThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--

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Posted December 19, 2009 at 1:25 pm [Printer Friendly] [Print w/ comments]
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