The banks are limiting their exposure. If you have borrowed 500k from bank X then they stand to lose 500k if you go under. If you want to borrow another 500k then bank X stands to lose 1million if you go under. So if you go to another bank for the second loan, bank Y , then each bank only faces losing 500k each instead of 1million. That is why…[Read more]

I dare say he gets sick of repeating himself and pointing out the somewhat obvious.