Many companies are going bust because they are unable to secure the lines of lending they used to because of the so called credit crunch. Many of these businesses aren't new some of them have been around for more than a decade.

It got me thinking, banks make a lot of money off the interest rates they charge people when they lend them money. At the end of the day if a bank isn't lending money it probably isn't much of a bank it needs some way of making money to pay its savers interest. If the banks are being so cautious even now at lending to each other even after the government has sunk substantial sums of cash into the system it makes you think we don't really have the bigger picture right now.

It makes you wonder if there is a secret amongst the banks that heaven forbid they are well and truly scr*wed or the debt is a magnitude worse than we ever expected. So much so that if it was revealed to the public the mass panic alone would cause a national disaster and the break down of the economy.  Another part of me wonders if they are spending all this time looking at all of their past investments so they can discover just how badly they have been exposed because they don't even no themselves. It stands to reason if you're a bank with this type of exposure you know your fellow banks probably aren't any better off and you sure as hell aren't going to lend them money to cover their exposure if there is a chance you may not get it back yourselves. To the politicians it has become a case of necessity it probably doesn't matter to them anymore if what the banks did was wrong all they are probably focusing on now is to stop it pulling the whole economy down with it at any cost. This may lead to the printing of extra money and the devaluation of our precious pound to levels we may never have seen before.