IMO,
in business you have plans. You make investments.Your plotting along.
During the GFC, you were plotting along doing business and credit lines that were not in use (hadn't been drawn on) were frozen. Commercial loans that are assessed and rolled over every 3 or 5 Years were called in.
Banks were trying to bring in their Debt levels as they had overstretched their Tier 1 Capital Ratio's. Reason being is that they were never checked. They just kept on inventing money for loans based on their Reserves.
(Just in case any of you don't understand the Fractional Reserve Banking System: Your Money at the bank is not paid 3% interest to you and lent for 6% to someone else. It is kept as a Reserve to the Bank. When their is demand for a Loan, then money is created in the Digital Domain and the loan is issued. Effectively, it allows a bank to create a $1 million dollar loan with your $100k cash at bank. So they are receiving 6% interest on $1mill while paying you 3% on your $100k. That is why during the height of the GFC, some people were negotiating a higher interest rate for their cash at bank than what you could borrow it for. Banks were careful not to publicize this but was evident of the banks trying to clean up their books. Reason this happened is that during the GFC, all banks were being audited for their Tier 1 and 2 Capital Ratio's. Anyway, the GFC was brought on deliberately. The existing system for leveraging was BASEL 1. 1st January 2008, BASEL 2 began it's roll out and freaked out all the banks which began them to contract their lending so they would not be called broke. They over leveraged their ratios during 2000's when they were not being checked. Goldman Sachs and JP Morgan have leveraged their ratios by 100 times but they would never be checked as they are owners of the Federal Reserve. Basel 2 introduced different ratios for different loans as opposed to Basel 1 which had a flat ratio. Also the ratios in 2 are not fixed. They are floating which is linked to the product, economy and the borrower. In other words. Under Basel 2 and the new Basel 3 coming, It has created a form of financial racism.
Before under Basel 1, EG, a normal home borrower needed their expenses to be under 33% of their Gross income and Rent. If some one had it at 20%, they would be looked at the same as someone on 30%.
Now, they can create more money to lend to the customer at 20% and offer them a discount Rate as oppose to the 30% lender. Hense the reason Banks have become more strict lending so they could tell potential customers to piss off when it suits them. Eventually, these customers run out and they start getting a little more lax for business which is only starting now.
I believe the next boom in credit will be larger than before as they are also going to allow more lending if the economy improves, but also a reason why Gov's have been told to control the expansion of economies. In other words, the Gov's are going to have a component in doing the banks work.
I think you can all see where this is going. It wasn't Labors fault in contracting the economy and it wont be Liberals who will expand it at will. They are slave to the Banking Oligarchy.
So are we.)
Smart Win could of made their investment then things started turning pear shaped on the other end.
That's when they could of tried to reneg and pulled the plug and at the same time trying to find excuses to find a back door.
Going through anyone's financials would uncover financial instability and hardship at the time.
I saw this happen throughout Australia.
Now if EEGC's contracts were tight and SW tried to pull out because of financial Hardship at the time and broke EEGC's Contractual agreement, I'm afraid SW should pull the plug and do a settlement out of court or their gone as EEGC could also claim their current financial Hardship due to the broken contractual agreement.
Many of these cases are coming to fruition through the Crts now.
IMO
DYOR.
H.
AI
