sunil94062

Signs That the Credit Crunch May Be Over

BUT imperically - I can vouch for the correctness of the media news - that Banks - and many of them are NOT lending - at least not for Real Estate! We have been trying to get loans since October ($3MM to $50MM for various projects - rental apartments, senior housing, serviced apartments) - and all we hear are an unambiguous NO! No money to lend for Real Estate - No money to lend for working capital - No money to lend for credit lines - secured or unsecured, No bridge finance, pretty much NO lending. This includes Banks of every ilk - Majors to Community Banks and thrifts - nationwide from our sampling.

As further proof, I have heard of professionals (Doctors and Lawyers), who have had the APR on their credit card outstanding balances ($1,600 balances) jacked up into stratosphere (from 10% to 21%) and credit limits cut drastically (-90%). NO - credit is surely 'crunched'.

When asked, the decision makers at these Banks respond - All of the TARP money is being "held" as a cushion to offset portfolio losses not yet booked - and there are many more to be realized in times to come!

Maybe what we have here is that there three kinds of lies - lies, damn lies and statistics - and statistics are the worst kind!

I think Treasury goofed!

That is how I see it.