Lending from U.S. banks taking bailout money falls $42 billion

June 1, 2009 by · Leave a Comment
Filed under: Industry News 

As it should be, we are now in a new economic reality that no matter what stimulus or bailout is done, banks and other lending institutions are not going to lend at the same levels as before.  Before we had excessive real estate appreciation with ultra low interest rates.  In that environment, banks were mostly lending against the increased value of the property and were less looking at the borrowers ability to service the debt.

Now we are in an environment were the borrower matters and they are using the normal lending standards and that means less loans will be made which is a good thing.  The answer to our problem is not more debt but less.

News (Reuters):

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