Banking Fears
The analysts have been trying to figure out what the new year is going to bring. For most it seems the banks’ profits are not going to improve with an alacrity, but they are hoping the money markets will go back to business as usual.
The fact is the banks are still going to be making it difficult for individuals to borrow, especially those who have less than stellar credit. This means that the banks are not going to increase in their profits any time soon because it will be too expensive for many individuals to borrow. This of course throws off the housing market.
You will also find that the trouble is centring on the income individuals are making. The income levels are not rising at a significant rate or even a turtle pace, which means that as the economic changes in fuel, food, and the housing increase more and more people are going to find it hard to find any income to buy a home with. It will also affect consumer spending in stores as they will be less likely to put money back into the economy.