Industry NewsMarkets & Economy

Banks must resume lending

Commentary: Borrowers shouldn't take no for an answer

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

The credit markets this week continued to thaw. All-important LIBOR fell to 2.38 percent for 90-day money; and one-year is down to 2.84 percent -- ARMs resetting next month will settle just a hair above 5 percent. 30-year mortgage rates with no fees made it to 6 percent, but for the umpteenth time this year stopped at that barrier. Central banks and treasuries around the world this week increased already massive intervention: The Bank of England cut 1.5 percent in one whack yesterday, joined by the ECB's 0.5 percent cut in the Eurozone. The Fed's overnight rate is 1 percent, but actual domestic interbank trading has been 0.23 percent. They will succeed in stabilizing the patient. The economic data are awful. You knew that -- no point in reciting. However, the pattern unfolding is important. The last two recessions, '01-'02 and '91-'92, were miniature affairs discovered after conclusion, typical of all post-WWII recessions except the two big ones, '73-'74 and '79-'82. Th...