When big banks succumb to those risks, those essential loan-and-deposit activities break down, and the result is an economic disaster.
Among the issues discussed at an afternoon meeting between the farmers and U.S. Secretary of Agriculture Daniel Glickman were an end to farm foreclosures, the return of foreclosed land, and financial compensation for the thousands of farmers who had been denied essential loans because of their race.
Your necessary expenses include food, rent or mortgage payments, bills, and substantial payments on the most essential loans.
It covers what Lovallo considers the essentials: student loans and rent.
Our survey of about 300 Los Angeles-area microentrepreneurs revealed, for instance, that almost 70 lacked those essential ingredients of "loan readiness". Their situation contrasts with that of most microentrepreneurs in the Third World who can be, say, successful street vendors without much formal education or experience.
Similarly, as so many mortgage holders found out after the housing bubble burst, careful and rigorous documentation is essential to resolving loans if they go bad.
Car loans, essential to keep a spread-out population mobile and working effectively, are expected to become unaffordable for many, especially those with reduced incomes and levels of savings.
And Cypriots feel they have been blackmailed by the European Central Bank's vows to cut off essential low-interest loans to the country's banks, unless Cyprus quickly agrees to Europe's bailout terms, he said.
For instance, the commercial paper market — short-term loans essential to corporations for meeting liabilities such as workers' payroll — was believed to be basically frozen until the Fed acted.
The central bank said on Thursday that Cyprus had until Monday to reach an agreement with the European Union and the International Monetary Fund if the government wanted its banks to continue to receive the low-interest loans essential to keeping them afloat.
FHA rules stated that "incompatible racial elements" would disqualify builders from essential federally backed loans.
