Subprime and the Economy

For a long period of time the news media has been telling us that the economy is in horrible shape and that we are in a recession.

To be sure things like high energy prices are putting a crimp on a persons disposable income, but I fear that the banking industry may be the factor that could potentially push us into recession.

Many of the businesses that I represent are still doing pretty well. They are doing well enough that many want to expand their business. The problem is that most banks have been unwilling to fund this expansion as they have in the past. The problem with this is that rather than having the businesses grow they remain stagnant at their current level of business. If they are not able to grow they cannot add jobs and purchase more goods and services.

So I believe the true key to the economy growing is simply banks getting back into the business of borrowing money.