March 10, 2023 - The Next Black Date in Economics?

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honorentheos
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Re: March 10, 2023 - The Next Black Date in Economics?

Post by honorentheos »

I was in a meeting today where a rep for a midsized bank with local presence presented. In his view things will get worse over the next year as more banks struggle while the constraint on lending will ripple out into many sectors of the economy due to the lack of access to short term loans in the one to two year payback range. Big, healthy national lenders are above this issue as they don't play in the pools that will be affected by this. His view, there will be changes that will either require those lenders to become part of those markets or we will see effectively de facto nationalization of a tier of banking. The most likely affected are developers and municipalities that rely on those kinds of loans to fund projects on their front ends.
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