Bank Lending Still Slow

The Wall Street Journal reports that banks are still tight-fisted, with lending down 10% compared to last year. About.com's US Economy expert Kimberly Amadeo notes:

"The recession won't be over until banks start lending freely again. Bank lending supplies the grease that lubricates the world's economic engine."

They're more picky about making new loans, and they've cut credit lines and closed credit cards. Until the fear subsides (there may be signs of hope in more favorable LIBOR rates), it's tough to get money.

What if you can't borrow from a bank? You might look into peer to peer lending and family loans as possible alternatives.

Further reading:

• About.com: Imagine a World Without Banks
• Family Loan Basics