Comments on: Mistakes of the Banks http://www.economicshelp.org/blog/economics/mistakes-of-the-banks/ Economics Blog - current events and economics essays Mon, 15 Mar 2010 10:06:19 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: 'Desola http://www.economicshelp.org/blog/economics/mistakes-of-the-banks/comment-page-1/#comment-2701 'Desola Fri, 20 Feb 2009 12:02:52 +0000 http://www.economicshelp.org/blog/?p=1308#comment-2701 A nice précis of the banks' lapses. Whilst I appreciate this is a quick overview, it is worthwhile drilling down one more layer in the section on sub-prime lending: the re-packaging of risky assets usually involved some form of guarantee to turn them from junk to AAA. The "guarantors" overstretched themselves. The investors did not look closely enough at the structure and risk commitments of the "guarantors". A nice précis of the banks’ lapses. Whilst I appreciate this is a quick overview, it is worthwhile drilling down one more layer in the section on sub-prime lending: the re-packaging of risky assets usually involved some form of guarantee to turn them from junk to AAA. The “guarantors” overstretched themselves. The investors did not look closely enough at the structure and risk commitments of the “guarantors”.

]]> By: Vidhiya http://www.economicshelp.org/blog/economics/mistakes-of-the-banks/comment-page-1/#comment-2616 Vidhiya Fri, 13 Feb 2009 19:22:52 +0000 http://www.economicshelp.org/blog/?p=1308#comment-2616 why are banks still not lending despite the bail out and increase in money supply? If all this time they have taken risk, why cant they take risk anymore? They should have more borrowers now due to low interest rates,if they can help small business who need the money then gorwth can increase gradually. All the banks should pass the rate cut. Thank you. why are banks still not lending despite the bail out and increase in money supply? If all this time they have taken risk, why cant they take risk anymore? They should have more borrowers now due to low interest rates,if they can help small business who need the money then gorwth can increase gradually. All the banks should pass the rate cut.

Thank you.

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