May end up in GD, but I’m looking for factual answers as much as possible.
So one common scenario of the recent credit crisis is that lending will dry up as banks are unwilling to make loans.
This seems odd, as banks make money by issuing loans. Shouldn’t it now be somewhat easier to get a loan if you are a good credit risk? I would think banks would be tripping over each other to get the customers that have good credit ratings, stable incomes, and are taking out loans that are reasonable considering their income?
I suppose interest rates might go up, but wouldn’t banks be quite interested in giving out loans to good customers?