Today, Monday 11-3, there is a lot of news about “not lending”.  Not a surprise is it?  The banks are still sitting on the cash the government gave them, so far no reason not to, and they feel better holding a lot of cash.  Eventually the bankers and other lenders will need to get the loan money flowing, remember, they make NOTHING on the money if it sits there, so they will start putting it out.  The big question is when.  First, let me say, there are loans being made RIGHT NOW!  Blue Water is getting approvals right along.  But the overall volume and terms will improve, IMHO, shortly.  Two things need to happen, first the election, OK done, that’s tomorrow.  What else?  The FED needs to apply some appreciable volume of KITA stimulation to the banks and lenders,  KITA?  “Kick in the ……”  Once it starts moving and the bankers get over the fear of making another big mistake, I mean individually and as institutions, the loans will begin to return to the previous volumes.  However, expect to see more strident terms for awhile.

Authored by:
Bill Cantrell - Blue Water Financial Partners AE