I just read Mish's article on Business Loan Margin Calls.
In short, bank "Margin Calls" on business lines of credit or loans can lead to a bank issuing 'perfect' interest letters to your accounts receivable. Some blame the credit cards for lowering credit lines, making many businesses cash strapped. Who owns the line of credit? It is the same banks that are calling in the margin!
This should be called predatory credit squeezing---where a bank squeezes credit card lines of businesses, so they can call in business loans and liquidate a business.
Very underhanded, but it may help thin the herd of companies in higher leveraged, lower margin business practices.
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