Wednesday, February 24, 2010
Lending falls at an epic pace
"U.S. banks posted last year their sharpest decline in lending since 1942, suggesting the industry's continued slide is impeding economic recovery..." -WSJ
Unequivocal evidence that the Fed is NOT printing money. In fact it has been the opposite case: money is being destroyed as lending collapses. Furthermore, it shows the idiocy of current Administration policy; its belief that gov't money to banks has anything to do with loan creation. It doesn't. There is one, simple way to restore lending and that is, enact policy that boosts demand and puts people back to work. NO ONE in the Administration seems to understand this!!!