Where has Banking Support Gone To?

Post Sub Prime (see my blogs from JANUARY 2007) and Northern Rock in the UK, the banks have taken their bat and ball and gone home.

Whilst the Banks were happy enough to flog derivatives to make themselves billions, now that their errors of judgement have materialised, it's business that will pay the price. Banks are not lending, they want to reduce overdrafts and defer decisions concerning investment propositions.

All of a sudden they have become too risk adverse. But now they risk causing a severe recession, they have to lend to keep the economy on track. Without liquidity industry will suffer. The Banks should take their pain from the sub-prime debacle, but no, its us who will suffer.

A set of recent proposals sent to various banks have all met with a similar fate. The lending ratio is dropping to nearly 50/50, security needs are getting to a point where those with this much free assets would not need the facility anyway. And cases are being deferred for 6 months.

So what are we to make of this?

The recession is already here.