Credit Crunch: Harder to borrow, higher rates

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Global savings glut meets U.S. consumer http://online.wsj.co...blah-blah
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The return of PMI for low downpayments http://www.recordonl...blah-blah
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First Magnus (big mortgage lender) halt new business, can't sell loans http://www.reuters.c...blah-blah
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National City stops taking home equity applications http://www.marketwat...blah-blah
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Re: Credit Crunch: Harder to borrow, higher rates

For months, the news media have been dispensing reports of a “credit crunch.” I have been puzzled by these reports because scarcely a day passes that I do not receive offers in the mail or via the Internet from lenders who want to lend me money to refinance my mortgage or to make purchases with a credit card they stand ready to issue me. garden fountains Am I the only one in America currently deemed creditworthy at attractive rates of interest? Having my doubts, I checked some standard interest-rate data conveniently available online. If credit were being crunched, one supposes that lenders would be willing to pay higher rates for funds placed at their disposal. intex pools Yet six-month certificates of deposit are now yielding less than the rate of inflation—people are paying the banks to take their money! Some credit crunch: banks and thrift institutions don’t even have to pay a positive real rate of interest to attract funds! This situation makes sense only if the world is awash in loanable funds, pool cover so much so that people are clamoring to part with their money for less than zero reward.

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