Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DuckTapeSunroof who wrote (32139)	6/22/2010 10:30:14 AM
From: Copeland	1 Recommendation Read Replies (1) \| Respond to of 103300

The heart of the problem, Buddy, is that most of the growth is coming out of the government sector and not through the private sector. Banks don't lend to the government, at least not in the traditional sense. The latest jobs report highlighted that problem.

To: DuckTapeSunroof who wrote (32139)	6/22/2010 10:42:52 AM
From: SGJ	2 Recommendations Read Replies (1) \| Respond to of 103300

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.... So small a response, so largely factually ignorant. So you are blaming banks? Banks should be forced to "grow business lending? Business lending will grow when the government backs off from implementing more socialism. Also, Banks don't get money from the Fed typically. The current T Bill rates hardly cover the operating costs of the deposit side. Margins are razor thin right now. You want banks to lend at current rates into riskier commercial lending? You want them to fail? You can get funding if you're a business. The going rate is about 12%. That's the real interest rate right now. Not many takers when there is so much uncertainty in the political world. Why go into more debt? Instead, lay off dead wood and pay it down.