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New day, new rules

After the past three years, banks are no longer willing to accept the risks they used to take - that applies to individuals and corporations. Any risk at all, regardless of how low, has to earn enough and more importantly, justify the "Gee, what if" scenario.

The changes cover a broad spectrum, too. Some borrowers with good credit/D&B ratings have seen their lines of credit reduced because the banks never made enough off of them to justify accepting ANY risk at all. They paid the money back too quickly or never borrowed heavily against their line of credit. I, myself, was hit by that and saw a line of credit slashed almost in half because I always paid the money back too fast and rarely approached anywhere near the limit.

So when a major bank does an analysis of their total extended lines of credit, consumer, commercial, and governmental, and suddenly realizes that the sum more than exceeds the total value of the bank's holding corporation, you can understand why they started cutting and tightening. (That actually was the case at one mega-bank.)

It's not the end of the world. it just requires better ideas, better business plans, more modest ambitions, having all your ducks in a row at the meetings, a bit more patience, or a combination of all of them. If you have a sound plan backed up with verifiable numbers and can articulate your idea, you WILL find funding.

Meanwhile HAG-an, who ticked off every bank by signing onto that idiotic "Financial Reform" law and has no power or credibility with the banks has hopes of them listening to the Senate's pleas to losen up lending standards?


When the government gets adversarial and attempts to put the screws to the banks, don't be surprised when the banks tell the government to drop dead.


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