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To make matters worse, Mexico's banks have been no more willing to lend to companies, preferring instead to lend, like the pension funds, to the state.
He said that banks had considered hotels to be too risky, preferring instead to lend money for residential developments, which have long-term leases.
Affluent urban Chinese families in particular are turning away from depositing money in banks at the extremely low interest rates offered, choosing instead to lend money directly to struggling businesses at double-digit interest rates.
He points to Golden West's use of in-house appraisers to value homes and the way it steers clear of the volatile luxury real-estate market, opting instead to lend to buyers of more modest homes (the average loan is $214,000).
Given current suspicions about traditional British banking, we might also see the development of related forms of ethical banking, where bankers refuse to lend money for purely speculative purposes, preferring instead to lend to individuals or institutions that create or build things with inherent social value.
Buffett has decided instead to lend his credibility to defend Wall Street against Main Street.
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The Europeans instead decided to lend the money directly to the Cypriot government; and the Cypriots, perhaps bullied by some creditors, then decided to clobber all the banks' depositors, even the insured ones.This was ingeniously loopy.
But this got me thinking that it would be better if the manuscript were published; I should try again to get it published instead of having to lend it to people while they were taking a bath, and then trying to get it back, trying to find it, get more copies made — all of those kinds of things.
Given the scarcity of long-term financing, some are looking to lend instead.
But instead of being inspired to lend more, too many banks hoarded their new capital, critics of the financial industry say.
But the flood of liquidity, instead of spurring banks to lend and corporations to spend, has stayed trapped in the canyons of Wall Street, where it is inflating yet another unsustainable bubble.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com