N.C.
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It's not a matter of "going to," they already did. ALL of them (yes, every single one of them) have tightened the credit standards as of the first week of August 2007. The biggest national banks, such as Bank of America and the European Central Bank (ECB), have already tightened the reigns in lending to EACH OTHER as soon as the subprime crisis news was officially announced back in July 2007. Since these big banks couldn't get enough liquidity from each other, they have had insufficient funds for their own liquidity, least of all lend out to consumers, as they are still striving to cover their behinds on hedge fund investments in the subprime wagon.
As of October 2007, the plan of adding extra "insurance packages" (translates to extra monthly fees) to credit cards and loans were ALREADY in execution. They just package their words so nicely to delay people from detecting their self-protection actions. Then by the time they officially announced the new "fixed rates," that was already their announcement of a change in their lending policy for the consumers.
Like the way they STILL refuse to use the R-word (recession) and the C-word (crash), it's just a matter of when they officially "announce" the truth. Another thing they don't tell most of the public about cutting interest rate (which Ben Bernanke did today by 0.75%) is that every time they slash the interest rates, it devalues our dollar against the foreign currencies even further----because cutting rates makes an international statement that our economy is weak and only getting weaker, as investors know that government only cuts rates when the economy is in trouble. |
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