More trouble for the economy? Now, after hurting the consumers’ credit ratings for so long, while at the same time hurting their own balance sheets, it appears that certain banks are getting a taste of their own medicine. Moody’s has recently downgraded the credit worthiness of certain banks, as described in a recent article.
What does this mean to individuals and businesses? It may mean that getting loans may get tougher, as banks raise funds to lend out to third parties. It could mean that banks will start liquidating collateral faster to get cash in and then to seek to lend it in more profitable ways. In any event, it’s not good, and affects all of us.
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