Duude

Credit Crisis Watch: Signs of Progress?

I can see quite a bit of impatience among some posters who don't understand why banks who have received government funding aren't lending out these dollars.
We are still in a state of de-leveraging of bank portfolios. It would be suicidal for some to lend out that which is saving their hide. It wouldn't serve any purpose for anyone if they lent it out only to be back in trouble with ratings agencies for their increased leverage. As for those who believe it would have been better to allow them to fail, I disagree. The world's largest bankers have foolishly tied millstones around their own necks and handcuffed themselves to one another. If you think this world recession is looking pretty bleak now, maybe we should replay this scenario and allow the dominoes to fall as they will. Lets then imagine a world economy with little or no leverage at all. Nearly all business would be negatively affected for a long, long time. Every homeowner would see their home values drop significantly with little ready market of cash only buyers. This isn't rocket science.