Friday, August 27, 2010

The Bank as Chicken and the Borrower as Rotten Egg

If equity were valuable, then banks would be lending.

All the rivers run into the sea,
Yet the sea is not full;

Ecclesiastes

* * * * *

A simple question one might ask at the conclusion of the following piece is: why are banks not providing favorable, secured financing for customers of small businesses in exchange for, say, an equity stake in the business?




For the answer see: The Simple Truth About Why Banks Are Not Lending.

—Tom Chechatka

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