Well this probably isn’t a good sign for the economy…… any other banks cutting off equity lines?
(media.greatawakening.win)
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It's a negative indicator of banking health.
It's a negative indicator of banking appetite for additional risk in a particular asset category. Sometimes this is a proxy for health. Not always and for tons of easily imagined reasons.
If interest rates are higher, wouldn't a bank make MORE money by lending MORE credfit?
Yes.
Therefore, it is not about higher interest rates.
Then, it's about real estate prices dropping, which is what I said in a previous post.
Rising interest rates are leading to lower real estate prices (just like artificially lowering interest rates resulted in the real estate price bubble), so we sort of agree.