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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (29214)	4/14/2010 2:17:16 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

"The money is sitting on the books of our now Zombie banks, just like Japan...." Yes. Unfortunately, I believe you are exactly correct in that. (And why should a big bank --- who can borrow money electronically at 0.25% from the Fed --- make any risky loans at all? When they can just stick it right back into 'safe' T-bills or short-term Agency mortgage bonds that are officially guaranteed by the US Government....) I believe you can lead a horse to water but you can't force him to drink it. The ONLY thing that will get the banks lending again is a rise in the Fed's rates, and the short-term rates overall. (I'm with the Dallas Fed on that one!)