Is There A Shortage Of Good Borrowers?
Although the supply of credit seems to be faltering, the price of credit stays low. Usually when a supply falters, demand drives the price upwards. What is happening here?
Could there be a lack of credit-worthy borrowers?
Has seven years of no increase to real income depleted the supply of credit-worthy borrowers?
In bad times, many people who once were credit-worthy lose that status.
Perhaps if they had better jobs, they would be more credit-worthy and that would drive the price of credit up. That would make the banks happy.
Banks need good borrowers.
Could there be a lack of credit-worthy borrowers?
Has seven years of no increase to real income depleted the supply of credit-worthy borrowers?
In bad times, many people who once were credit-worthy lose that status.
Perhaps if they had better jobs, they would be more credit-worthy and that would drive the price of credit up. That would make the banks happy.
Banks need good borrowers.
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