Risky Loans Will The Credit Crunch Create The Opposite Affect They Claim, Causing More Banks To Write Risky Loans?

Will the credit crunch create the opposite affect they claim, causing more banks to write risky loans? - risky loans

No, this is what would happen. Banks and credit institutions do not. Declare bankruptcy. Government-insured savings it. If saved from bankruptcy, they need to borrow any funds for payments of interest to be paid on savings accounts. Only this time are loans to people with good credit and collateral, because the banks can borrow money to foreign banks.