Quote:
Originally Posted by webmasterchecks
i can only imagine the banks pulling back like a rubber band when/if the shit hits the fan, especially when they are still having the problems from overextending the mortgages.
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Quote:
Originally Posted by webmasterchecks
banks made a lot of the money off the mortages before the credit crunch, now they are carefully thinking out who they are going to issue loans to, because so many are defaulting, and they made money off of not being careful enough in the past, and are now getting hit
the same principle can apply to merchant accounts
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i appreciate you reply but it's still a huge jump in logic.
the qualifications for a loan today are more rigorous than 3 months ago but that is completely separate from running a legitimate business; and your cb ratio does not raise a flag, the bank simply won't have a reason or inclination to "blow up your merch acct" as the thread title suggests.
also, most of the profit that has been "lost" by lending institutions have been loan loss provisions set aside to offset deteriorating real estate portfolios.
there's simply no logic in a business cutting 1 HUGE profit center due to another's issues. if anyone has their own merch accts "blow-up" it would be due to something else- cb ratio, fraud, etc. all the usual high risks involved in adult.
which has always been the case regardless.