Banks Start Promising Kashkari They Will Make Loans

More importantly, the WSJ gets at the real problem here. In addition to running on fumes and fearing for their own futures, the banks aren't lending because:

* Some potential customers are in terrible shape (and banks just learned the hard way that lending money to customers who can't pay it back isn't a stupendous idea)
* Other potential customers are cutting back and don't want the money.
* Would-be depositors are hiding their money in Treasuries.

What's really going on here? Our economy is collectively coming to the consensus that a 350% debt-to-GDP ratio (vs. 155% average) is too high. Shoveling money at the banks won't fix that. The only thing that will fix that is vaporizing $10-$20 trillion of debt.

Read the full story here

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::Big Banker Writes Anonymously: Government Needs To Stop Helping Big Banks
::AIG's Bailout Total Rises To $144 Billion