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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Threshold who wrote (12595)10/16/2008 3:48:54 AM
From: pogohere1 Recommendation  Read Replies (2) | Respond to of 50356
 
There is even more incentive not to lend, but to maintain reserves with the Fed, which now pays interest on reserves. The money goes out from the Fed/Treas to strengthen balance sheets and comes right back in the form of reserves that earn a non-risked return. Why lend to borrowers who are already over extended when you can get a risk-free return? Rather like pushing on a wet string.


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