{"id":264,"date":"2010-06-14T13:13:46","date_gmt":"2010-06-14T20:13:46","guid":{"rendered":"http:\/\/privatemoneysource.com\/blog\/?p=264"},"modified":"2010-06-14T13:13:46","modified_gmt":"2010-06-14T20:13:46","slug":"question-what-will-it-take-to-get-the-banks-to-lend","status":"publish","type":"post","link":"https:\/\/privatemoneysource.com\/blog\/?p=264","title":{"rendered":"Question: what will it take to get the banks to lend?"},"content":{"rendered":"

Clay Sparkman<\/em><\/p>\n

Back in January, in my post entitled, \u201cWon\u2019t somebody please call a plumber \u2026 the banks are clogged<\/a>,” I addressed what I consider to be the essential question regarding what it will take to get the real estate economy on track and moving in the right direction assertively and with confidence again.<\/p>\n

And now, nearly six months later, my final paragraph seems quite equally relevant.<\/p>\n

\u201cAnd so even though a lot of good things are happening with our economy as of late, real estate prices will not correct until lending institutions provide adequate funding once again to owners and buyers\u2014and the economy as a whole will remain at least partially broken until this occurs.\u201d<\/p>\n

There used to be a lot of talk about getting toxic assets off the books and getting banks to lend again, but I hardly ever come across serious discussions of this issue in the financial press these days.\u00a0 It is as thought government officials and journalists and such have decided that this question is just too difficult to answer and thus should just be ignored.\u00a0 Like a stray dog, maybe if we don\u2019t make eye contact it will just go away.<\/p>\n

I used to think that the banks would have to begin lending again as soon as they cleaned up their books a bit.\u00a0 After all, if a bank doesn\u2019t lend, what then does it do, and wouldn\u2019t it go out of business?\u00a0 Well it turns out that, \u201cno\u201d it is not necessarily so.\u00a0 From what I can tell (and this is not a terribly informed position mind you), many of the banks and bank-like entities have taken to investing in various commodity style investments.\u00a0 They have effectively become investment houses, and are doing quite well, thank you.<\/p>\n

So I pose the question to my dear readers, as I honestly don\u2019t have a clue: what will it take to get banks to start lending again\u2014and I\u2019m talking about loans across the spectrum (residential, commercial, development and construction)?\u00a0 If you have a position on this matter, please share it with the group.\u00a0 Or if you have access to an informed article that seems to reasonably address the question, won\u2019t you please pass it along?<\/p>\n

I\u2019m sure we\u2019d all like to know.<\/p>\n

— Clay (clay@privatemoneysource.com)<\/p>\n","protected":false},"excerpt":{"rendered":"

Clay Sparkman Back in January, in my post entitled, \u201cWon\u2019t somebody please call a plumber \u2026 the banks are clogged,” I addressed what I consider to be the essential question regarding what it will take to get the real estate economy on track and moving in the right direction assertively and with confidence again. And […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":""},"categories":[21,1],"tags":[37,40,41,42,43,49,50,51,53,54,58,59,60],"_links":{"self":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/264"}],"collection":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=264"}],"version-history":[{"count":0,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/264\/revisions"}],"wp:attachment":[{"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privatemoneysource.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}