US and European banks are not lending despite huge bailout funds injections

[Peter Sumter, Banking News Contributor]

Huffpost Business: It seems that entrepreneurs and others looking for loans from US and western European banks are likely to continue to be disappointed as despite the enormous amounts of bailout funds injected into the banking sector, figures over the past few quarters for some of the largest banks show that the banks are simply not lending.

Analysts are reporting that banks appear to be making their profits these days from their ‘rainy day’ funds (funds for bad loans) as well as from generating more in fee income for services.  There is concern that if this trend continues, then the financial crisis is sure to mature into a full-scale world-wide economic crisis as businesses will not be able to grow which will impact heavily upon consumer spending.

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US Stock Markets bring happiness factor to Americans

Huffington Post reports that Americans are happy, thank you very much, as the country’s famously strong  Stock Markets increased their wealth by more than $2.1 trillion in 2010 despite the country’s woes of high unemployment and a jittery real estate market caused by the global financial crisis. As a result, the beginning of 2011 saw the net worth of Americans increase by 3.8% from 2009 to $56.8 trillion according to new figures from the US Federal Reserve.

Greg Daco of IHS Global Insight commented: “The stock market is performing very well, it rebounded in the third quarter (of 2010) …. as result, there’s been a big gain in assets for households”.

[USA Financial News Contributor]

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