"Demand for most major categories of loans at domestic banks reportedly continued to weaken, on balance, over the past three months."
While banks aren't necessarily tightening credit standards as much as they had been, fewer people are showing up to borrow (as reflected in Friday's consumer credit numbers). You simply cannot force people to borrow money.
1 comment:
This ties in with my experience today with a garage door salesman. I wanted to buy a new garage door and have it installed asap. I chose a standard style and color (almond), but he on;y had white in stock. He explained that business is so slow that they can only carry about 40% of their normal inventory. They don't feel confident enough to finance a larger inventory. It'll take 2 weeks to get my garage door so this company will repair my old door at cost so that I can wait for delivery of the new door. This company has been around for 35 years, so they know what they're doing. I wonder what it'll take to get small firms to rebuild their inventory?
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