Certainly it is not a good time yet to exit the market to seek capital. Apart from the lack of the same, this action may represent a bad signal about the health of the financial institution who opt for such action. They say from the banking sector, the drop in credit supply is not generating a restriction of credits because there is either too much enthusiasm from the demand. The companies have filed their expansion plans and consumers have cut back their expenses. Thus, everything has become very austere in the country of the over-work. The bet, according to Enrich and Fitzpatrick, is in this context, credit is not recovered until the second half of 2010.
For those who know the Argentine experience of the crisis of 2001, which would end to convertibility in the first model days of 2002 and that it shares many elements of the sub-prime crisis subprime in terms of its effects, although the country had a much smaller banking sector that the U.S., can be very useful when making predictions. In this sense, in the case of Argentina, credit to the private sector was not recovered but until the beginning of the year 2004, and did logically through short-term financing. If the Argentine experience in where the banking sector as a whole received a blow both or harder than the suffered by the American system (like the coup received by economy, enterprises and families) can be considered as a parameter of comparison, then you can expect that the recovery of the credit would have to take place towards the last quarter of 2009that is, three quarters earlier than expected. So far, so far in this scenario, banks prefer to be cautious. Richard Davis Executive of U.S. Bancorp (NYSE:USB) said: I think that it is good for the banks if we continue to be cautious as industry and non-we generate a credit growth through the reduction of support in the capital.