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IMHO Canada and Australia have PROVED beyond a shadow of a doubt that if you make loans attractive enough people WILL BORROW.
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Unfortunately, that is not the case as noted by Bloomberg in FDIC's Bair Concerned Banks Making Only 'Safest Loans,' Urges More Lending
Federal Deposit Insurance Corp. Chairman Sheila Bair said she’s “concerned” that U.S. banks are making only the safest loans, and encouraged the companies to step up their pace of lending.
“There needs to be well-managed risk-raking to get the economy going again,” Bair said today in a Bloomberg Television interview at the White House, prior to a meeting of bank chief executive officers with President Barack Obama.
So Why Aren't Banks Lending?
1) There are no credit-worthy businesses that want to borrow.
2) Consumers are tapped out and do not want to borrow.
IMHO Canada and Australia have PROVED beyond a shadow of a doubt that if you make loans attractive enough people WILL BORROW.
_____________________________________________
Unfortunately, that is not the case as noted by Bloomberg in FDIC's Bair Concerned Banks Making Only 'Safest Loans,' Urges More Lending
Federal Deposit Insurance Corp. Chairman Sheila Bair said she’s “concerned” that U.S. banks are making only the safest loans, and encouraged the companies to step up their pace of lending.
“There needs to be well-managed risk-raking to get the economy going again,” Bair said today in a Bloomberg Television interview at the White House, prior to a meeting of bank chief executive officers with President Barack Obama.
So Why Aren't Banks Lending?
1) There are no credit-worthy businesses that want to borrow.
2) Consumers are tapped out and do not want to borrow.