To: Snowshoe who wrote (125848 ) 12/9/2016 6:55:28 AM From: Elroy Jetson Respond to of 217703 James Mackintosh is obviously an outright crank. What did he read for in Oxford? Certainly not economics. - linkedin.com If Larry Kudlow can still find a job in financial journalism with the nonsense he talks, anyone can. There is no campaign "to direct funding to governments" - it's laughable, someone on the outside trying to look in at what's going on inside. If you want to know what's going on with banks and lending, watch tonight's Charlie Rose interview with Bank of America CEO Brian T. Moynihan. It will be available online a day from now. - charlierose.com Banks don't want any change or repeal of Dodd-Frank which put all lenders under the same big tent - that way leads to collapse. What they're pressing for a a reduction in capital requirements, which would make more money available for loans consumers and businesses generally don't want. - and some might be justified. The problem is the end of this road led to Citibank operating with 1.5% capital compared with something more prudent for banks today like 9% - and that percentage is all adjusted for risk Since 2008 the money market funds have been short-term repo agreements from very solvent State governments. In California it's almost all repos of California debt. Fidelity doesn't want to be sued, and short-term Federal debt attracts essentially no interest - there's a shortage of short-term US Treasury Bonds and Bills. These comments below bear zero relationship with reality in industrialized nations. The campaign by governments to direct financing to themselves, limiting access by the private sector. In the U.S., there are legal changes under way in the money markets, which is prompting money to shift from “prime” funds, which buy short-term debt issued by companies, to instead buy short-term debt issued by the U.S. Treasury. This is merely the latest example of what academics call financial repression , a broad category of government policies adopted to encourage or require savings to be lent cheaply to the government.