This def. is not over - the credit bubble has not popped yet either. Once that goes everything will topple like dominoes as well - because it’s a spider web. Bank A loans to Bank B - both Bank A loans to Company C - Company C loans to Company D - Company D gets another loan from Bank B - Well if Company C can’t make payments on their loans and goes into Default on their letter of credit then Bank A owes money to Company D - does it have that money? If Not then Company D will most likely topple and not be able to pay its loans - Bank B is out and Bank A needs to pay Bank B and so on and so forth!
When Mr. Carters administration managed to get the short term commercial loan rate up to 22% I decided to have a long talk with my banker. The outcome of that conversation was an agreement that if I got out of the banking business, He would not seek to offer services in my line of work.
We immediately switched over to a cash basis, and everything was fine right up until the day I closed the doors for good and retired.