LyrArc Article Gist
Its of huge importance that the banks who had a capital injection of $125 billion on Monday October 13, go out and lend some of that capital but this looks increasingly unlikely for the next quarter for some of the banks with gaping holes in their balance sheets and even for a couple of quarters according to some analysts. Merrill's Thain said it was unlikely considering Merrill's losses that it would do so for another quarter and Barclsy's analyst Roge Freeman "its quarters off , if not months off, before you see that capital being put to work." In that case proposals that help homeowners become critically important as more and more howeowners in a downward spiral could find themselves under water which is a point that has not been grasped by the Bush administration. As access is denied to credit markets unemployment rises for small and large businesses and this alone leads to more troubled omeowner loans. nd the auto and credit card debt problems still remain to be worked out creating more downward spiral.