Reckless banks want free umbrella back so they can soak borrowers

BANKS give you a free umbrella during the sunny days but take it back from you as soon as it starts to rain.

The economic rain clouds have been gathering for some time and, predictably, as the deluge of bad news has begun the banks have acted as they have always done through history when this happens, leaving many customers to get soaked. Those umbrellas weren’t the gifts you thought they were, but merely on loan.

The banks doubtless would describe this analysis as unhelpful melodrama. They are businesses that have to protect the best interests of their shareholders and that means maintaining profitability. Changed circumstances mean they cannot be as “generous” any longer in offering loans they perceive may run the risk of not being repaid, no matter how much they might like to help people or companies who come to them.