I thought that one of our present problems was that banks were loath to loan but that there was demand, which they were not meeting in part due to stringent loan practices so they don't get burned on bad loans. You seem to be saying there is no demand. Are you talking about the mortgage market, or the commercial/small business market or both? And I would appreciate an explanation of what you mean by their margins being too low. The banks are now practically borrowing at 0% . Are you saying the demand for loans is so low that they can not charge a high enough interest rate to have a decent margin/mark up?
I'm asking because I keep hearing about all the poor business people being unable to get loans. You'd think if they want a loan they'd pay a higher interest rate and the bank margin would be adequate, no?
I could use some help understanding this stuff.