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The company halted mortgage lending and stopped paying its dividend.
The banks are retrenching, cutting lending and shutting whole divisions.
What's more, bank lending and consumer confidence are rising again.
Yet the alternative is more wasteful lending and unproductive spending.
The banks had stopped lending and consumer confidence had evaporated.
But foreign lending and investment are financing them with ease.
They include distressed debt, activist investing, lending, and buy-outs.
Easy money led to excessive lending and soaring home prices.
The result was disastrous subprime lending and other dubious loans.
The idea is to get lending and investment going again.
The banks avoided subprime lending and arrears rates remain tiny.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com