# how bad are the banks??



## UFOman (20 Aug 2010)

ive been thinking here, over the last 2 years they aren't giving out money to anyone, but yet, i'd imagine 70% of business loans, private mortigages are been paid back, they must have alot of money now in "the bank", while paying out no new loans


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## Sunny (20 Aug 2010)

UFOman said:


> ive been thinking here, over the last 2 years they aren't giving out money to anyone, but yet, i'd imagine 70% of business loans, private mortigages are been paid back, they must have alot of money now in "the bank", while paying out no new loans


 
They also owe a lot of money


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## Chris (20 Aug 2010)

Sunny said:


> They also owe a lot of money



Yes indeed, you need to look at both side of the balance sheet. The big problem is that they borrewed short-term to lend long-term, and are now in a situation where thier borrowing costs exceed lending costs, e.g. with Tracker Mortgages.
Banks' are still in dire condition.


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## marley101 (8 Nov 2010)

are bank shares going to go down the toilet?, BOI at 40 cent now


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