On the other hand the Federal Bank Examiners are tighter than they have ever been. When a bank makes a loan if it isn’t to a borrower that doesn’t really need the money the Examiners criticize the bank and make them set aside capital against the loan. The examiners need to lighten up also or you will never see any loans made. The banks are more afraid of the examiners than they are of anything else.

Ooooooh, very interesting. So, it’s not JUST the Wall Street bankers, it’s Bushie politics at work too. Verrrryyyy interesting.

Got any links to evidence that it’s much more strict than usual?

Why aren’t the banks lending money? That is why we gave them the bailout money? Under what conditions will they loan money again?

They claim the other banks who want to borrow from them are holding a lot of mortgage-backed securities which have lost value as the housing bubble burst and this means those banks can’t be trusted to repay any loans.

They might be right or just lying to execute some other agenda.

They would have every reason to loan again if the mortgages are modified to be sound again. But, even then they’re likely to be less valuable than they appeared to be at the height of the artificial housing bubble.

If their agenda is to ruin the economy, then nothing can make them loan short of a gun.

”hoard”

“beeatch”

heh

All you have to do is ask around, everybody is behaving exactly like you are, nobody is buying anything, we’ve all become very sensible lately.

It’s a consumer confidence crisis, those big guys, they’re just worried that Paulson is going to run out of ‘Loyalty Bonuses’ before they get their share.

Segment on the creation of the Federal Reserve.