I meet with some regional bankers last week and they told me that they could not continue providing the attractive rates that we have been enjoying. Apparently, the Government told them to take TARP money, even though they did not want it, and is charging 5% for 5 years and 9% after that.

They said that if they continue to lend at the same rate, even though it was LIBOR + 2% they would now be losing money. Now they want to put a floor on the interest + % rate charged.

The TARP is actually going to cost us more money to borrow. I had no idea that "loosening" credit meant raising interest rates.

Skreal