Banks and credit squeeze

[dewdrop]

Banks rightly have been criticised for massive loans to property developers with resultant bad debts. They are now been criticised for not lending to fund business activities. Everyone is talking about the severe fall off in trade generally. What puzzles me is the logic in the pressure now on banks to lend and possibly incur further bad debts. Would you lend your own money in the present climate?

 

[GeneralZod]

Donno if this carries over to here but in the UK the banks claim they are lending more. They say the problem is SMEs are trying to borrow more than they were before the recession started.