FEAR OF LENDING

For years the banks lent money to anyone who breathed, secure in their belief that the loans were insursed by AIG.

Now USA banks are sitting on ONE TRILLION DOLLARS over what regulators require that they keep in order to be healthy.

The problem is that this failure to invest ONE TRILLION DOLLARS is what is keeping the economy from rebounding. Maybe we should send the bankers back to college to take economics again. Failure to lend will cause another crunch in the supply of money. (I am not the only one to believe this. German bank regulators are saying the same thing.)

NUMBERS are not the only thing that makes a borrower credit worthy. Length of time in the community, commitment to a project, knowledge to make the project work, are all factors in making a good loan.

I have been talking to people who have not gotten loans. I am beginning to believe that banks are returning to their old bad ways of red-lining communities and not lending to credit worthy women.

We all kept from allowing fear to destroy the world wide economy. Banks should learn from us.

FEAR OF LENDING WILL DESTROY US ALL.