posted on Jun, 8 2011 @ 07:13 PM
reply to post by camaro68ss
Yes, the cost and scarcity of funding has become a large obstacle for many businesses, big and small. The frightening part is now its squeezing both
ends- we have asset inflation increasing cost of business, especially amongst core industrials that rely on stable prices in commodities markets and
transportation of goods (oil). This is a real double whammy.
though our credit markets unfroze, they never truly thawed out. A banks ability to lend and provide favorable financing to industry was one way
business could ease the pain of asset inflation. however, banks are less willing to lend and are struggling with a new regulatory environment that
has limited new "innovative" (ridiculous) solutions that enable banks to be more aggressive in these markets and then offer clients ways to reduce
exposure to asset price volatility. Whats the use in selling financial products when the cost of that Dodd-frank hiring will eat up most of your
*potential* profit especially when youve no idea how extensive those reporting and control requirements will be (so ultimately no real clue what they
will yet cost).
So big publicly traded home builders like toll and ryland end up as sitting ducks for the market jackals to short silly and profit from their own
sectors inability to support the very industries they are designed to enable. Thats our free market. Embarrassing.
whats particularly bleak about what i heard was a bank itself, one of the big ones, was getting squeezed by external funding issues. This is not
good. One constant throughout this 2 year money game has been that the TBTFs will keep running, regardless of their zombie insolvency. They will be
supported and allowed to borrow, spin off, steal and book-cook their way thru this for the greater good (not something i support in anyway, FYI!).
its deja vu from 3 years ago when this all started. banks warry about lending to themselves... the very foundation of their business shaking in its
edit on 8-6-2011 by chaeone86 because: changed language on financial products and added to cost of
edit on 8-6-2011 by chaeone86 because: (no reason given)