tip, if you find a good deal go for it!

Dan_Collins_2

EdInvestor wrote: »

No that's not it. The problem is more complicated: the banks are all hoarding cash rather than lending it long term, because they are worried they won't be able to replace the money they've got if they lend it out. This is because the money markets for shorter term lending have seized up. The seizing up is caused by banks being afraid that other banks they lend to might fail.

It is all fear and rumour based.If you look at Bear Stearns, one day it was fine, two days later after some rumours, all its customers fronted up and demanded their money back.No bank can cope with that no matter how strong it is.This is why the central banks are having to supply all this money to the system, so the banks can go and get funds directly rather than from other banks.

The words "self fulfilling prophecy" come to mind. :rolleyes:

Very good point, lenders are worried about lending to each other so they cant or wont lend to another lender or securitise deals.

Also, we are down on this time last year, it has defo got busy this month, but not as busy as last year. However lenders are telling us they are rammed!! Do you think this is becasue they are not replacing leavers?? or they are really busy?