Tuesday, November 25, 2008
Loose Lending Sinks Economies
Bank lending practices have returned to the more sensible way they were prior to Clinton's intervention. As a result, everyone is saying that credit has "frozen," making getting a loan "nearly impossible." Nonsense. More difficult, yes. But not impossible. More rationally available, yes. But hardly frozen. But because loans are nowhere near as easy to get as they were in the situation which caused this crisis, the Treasury Dept. has announced that they are moving to free up credit, to make it easier to get -- again. Loose credit is what put us in this situation. Doesn't that moron Paulson get that? Easily available credit is a political, not an economic, issue. that should tell you all you need to know about why Paulson is doing it, and what the consequences will be.