Monday, January 26th, 2009
It is evident that banks and finance companies are doing everything in their power to rebuild their balance sheets. In an effort to lower their own borrowing costs, they are looking to the Federal Government for guarantees. They are actively engaged in the business of shrinking their own balance sheets, i.e. reducing their loan portfolios. And in the process of trying desperately to survive and eventually some day to thrive once again, they are abrogating the very rationale for their existence.