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Politics : The Obama - Clinton Disaster
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To: Copeland who wrote (32136)6/22/2010 10:26:17 AM
From: DuckTapeSunroof  Read Replies (2) of 103300
 
Re: "banks limit their lending when there's zero to negative economic growth."

True.

But that is not currently the case in the US (1st. Q. GNP growth ran at around +4.5%)

However --- I expect that so long as banks can get zero real cost money from the Fed, and clip coupons for Treasury bonds, then they will likely be inclined to reach for this "free, no-risk money" INSTEAD of growing business lending....
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