Comments on: Is international trade next to seize up? http://www.globaldashboard.org/2008/10/13/trade-next-to-seize-up/ Global risks and how to respond to them, edited by Alex Evans and David Steven Sat, 11 Feb 2012 13:49:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: lcguy http://www.globaldashboard.org/2008/10/13/trade-next-to-seize-up/comment-page-1/#comment-3405 lcguy Tue, 14 Oct 2008 18:04:48 +0000 http://www.globaldashboard.org/?p=2381#comment-3405 The amazing part is that banks, who were willing to lend without collateral, are now so scared that they do not lend to customers who have collateral. The fear, that collateral cannot be liquidated to secure payment of a loan, once it is considered real, becomes a self-fulfilling prophecy. With the stock exchanges recovering, I believe everyone hopes that these irrational fears are assuaged and that banks will again lend to each others and customers with collateral. The amazing part is that banks, who were willing to lend without collateral, are now so scared that they do not lend to customers who have collateral. The fear, that collateral cannot be liquidated to secure payment of a loan, once it is considered real, becomes a self-fulfilling prophecy.

With the stock exchanges recovering, I believe everyone hopes that these irrational fears are assuaged and that banks will again lend to each others and customers with collateral.

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