[SteveinTO]

A bank's assets are it's loans...to you...to business...for cars...for houses...for Pelican's revolving line of credit. When a significant percentage of those loans are in default, a bank has no funds to make more loans, hell sometimes they can't even make payroll. Would you loan money to a bank like that? (Suprise, the answer is yes).

At the bank I work for, with no sub-prime loans or securitized portfolio of same, there is no liquidity crisis. If you've got 10% down, allow us to verify income, do a real appraisal, you can borrow easily at market rates.

If you want a negative amortizing, interest only, 3% teaser rate for an illegal alien gardner making $300,000 per year, you now have a "liquidity crisis."

Using Wayne & Pelican as an example, there is much financing available for an owner occupied commercial real estate building.

But try financing something a little more speculative, raw land...investment property... a construction loan. Deals we would have done in a heartbeat three months ago suddenly are extreme risks vis a vis their ability to "cash flow" and make payments.