more pain to come, page-28

I know this post is going against the tide.
But I am convinced that banks and the creation of credit has a lot to do with the economic growth.
By lending out money on the basis of keeping 10% in deposit, banks can control the economy.
They can determine whether consumers can buy cars, computers etc and they can determine the how much a business can grow ie whether or not they will be allowed to grow in the first place and how much they will earn as interest is a cost to business and impacts on profits.
Anything that either raises interest rates or takes away the amount of funds available to grow business will have an impact of economic growth.
So far we have a report that inflation is worse than expected - 4% so this would imply that interest rates will go up.
We also have this subprime business which will surely take out the amount of funds available to buy assets and grow business further.
Now in a report today we are seeing that businesses are having difficulty raising funds by issuing bonds and are turning to banks for capital.
It is a long article so won't put it up here. But give it a read if you are interested

http://money.ninemsn.com.au/article.aspx?id=339294
Another indication that there is a credit squeeze. But not sure how all this will impact on stockprices.
I am about 75% in stocks and 25% cash