09-28-2008, 04:25 PM
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#11 (permalink)
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| BenzWorld Elite
Date registered: Mar 2006
Posts: 10,032
| A good summary from LA Times (of all places) of why ... Quote: Lending freezes as anxiety grips capital markets - Los Angeles Times
Lending freezes as anxiety grips capital markets
Credit is so tight, routine transactions have been hobbled. With interbank lending stifled, regulators are worried.
By Tom Petruno and Walter Hamilton, Los Angeles Times Staff Writers
11:15 PM PDT, September 26, 2008
As Congress wrestles with a $700-billion plan to buy up bad mortgages, many on Wall Street say the situation in the banking system has become desperate.
Credit -- the lifeblood of the economy -- has simply stopped flowing in many parts of the financial system over the last two weeks.
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Bert Boeckmann, who owns Galpin Motors in North Hills, said the credit crunch had made it tougher for all but "prime" borrowers to get car loans.
As for mortgages, Wells Fargo & Co. this week was charging 9.25% for "jumbo" 30-year loans -- those larger than about $730,000.
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