In an effort to keep the economies moving the Central Banks in many countries are announcing rate decreases today. By lowering the cost of borrowing this helps spur peoples incentives to purchase items with credit. This in turn keeps the economy active and helps stabilize the entire financial market. In theory at least.
From personal experience over the last month while rates may be lowering, the banks themselves are tightening up considerably to the point of creating their own demise. Think about it, and this is what annoys me, the banks are in business to loan out money and make a profit on the money they lend(and a killing on service and setup charges), yet they are getting so tight they aren’t lending money out unless you have near perfect credit and don’t require the money. They are being so freaking conservative with their lending it creates a situation where even if rates are lowered people cannot qualify anyway.
So now they have low rates, but won’t give you the money to spur the economy and then may request federal assistance due to the state of the financial industry after recording record profits for how many years in a row? No irony there!!
Here is the link to the story >>>>> Central Banks Announce Coordinated Interest Rate Reduction
