Is credit hard to get now because the government has all the paper though?
Yes, it is.
Private banks are waiting out the government, this is a time of insecurity, no one knows what will come out of congress, H.C, Cap and Trade, the new taxes on the way, etc.
And the problem during a recession is that credit is hard to come by right?
Well what would be the function of an increase in savings? With free banking, would that make loans easier to get again?
This isn't about banks, it's about their customers. Is there a shortage of money to borrow?
Excuse me. But I think you knew what I meant. Sorry for being not boring when I write.
So every company is failing during a recession? Realllllllllllllllly?
It is all about the banks, and the banks are keeping their powder dry.
There are customers, but business is slow, and the government is making it impossible for banks to make informed decisions about whether to lend or not!
So every company is failing during a recession? Realllllllllllllllly?
But the claim was that the government was borrowing all the money so private borrowers can't. I was refuting that.
That is still the claim, they are.
That is still the claim, they are.
Can you back that up with evidence? Link?
I don't need a link, it is really explained quite simply...
The banks are worried about the government spending, they are waiting to see how this turns out first. You then add in the bills before congress, and you have just made this insecurity ten times greater. You also factor in the fed, and the fact that they are trying desperately to control inflation, so the banks are between a rock and a hard place.
The term you are looking for is "crowding out", and due to the low level of business investment being pursued, we are not experiencing it. Crowding out is typically experienced during expansions in which government spending is exceeding government income.
WTF are you talking about?
You have the absolute nerve to suggest this...."Crowding out is typically experienced during expansions in which government spending is exceeding government income"
And then double down by asking me "WTF am I talking about"
You are obviously on another planet!:shock:
That is a straw man and you know it.
Nope, it's a point. We want the failing businesses to get smaller and the succeeding businesses to get larger.
The banks are worried about the government spending, they are waiting to see how this turns out first.
You then add in the bills before congress, and you have just made this insecurity ten times greater.
You also factor in the fed, and the fact that they are trying desperately to control inflation, so the banks are between a rock and a hard place.
Again your error is in regards to time frame. Savings fuels long run growth. :2wave:
This isn't about banks, it's about their customers. Is there a shortage of money to borrow?
Why would they be worried about government spending?
Which bills?
Well, that may be a factor, yes, but the Fed is hardly worried about inflation right at this moment. Deflation is more like it. The Fed has pushed interest rates really really low and lowered the discount rate as well to make it easier for banks to loan out money.
Because bankers, like everyone else with some common sense, know that the money that the government spends will have to be paid back by their customers. They're not going to make loans to businesses if theirs a better than average chance that the loan want be paid back. A tax hike will cause that better than average chance to exist. You think banks in Louisiana are making loans on oilfield equipment right now? uh, no!
Cap-n-tax, Obamacare, Pork I and II, Omnibus. The new taxes that will be born out of these bills will greatly effect a businesses bottom line, along with their ability to generate enough revenue to repay a loan, plus still be able to operate.
So you think an administration that is doing record deficit spending to save the economy is going to be concerned about the deficit so much in a year or two that they will impose massive tax hikes before we've recovered and risk undoing this expensive recovery? And you think the banks really think that? Right.
Cap and trade will have some costs, yes.
Obamacare will end up saving the government a slight amount of money, depending on which version passes.
"Pork" and omnibus I presume means appropriations bills, which don't impose any taxes, but rather spending, which is the good thing right now, remember? If you don't, the banks will.
I know the banks are thinking about that. We're not talking about 90 single payment loans here. We're talking 24, 48, 60+ months loans. Do you seriously think that banks aren't thinking about new taxes that will be imposed 5 years from now?
No one knows what CnT is going to cost private businesses and no one is going to d anything, till CnT goes away, or we can get a solid fix on how much will come out of our pockets.
Yeah, right!! A government program that saves money...:rofl.
They have to be paid for, sooner, or later. Hence, the government can't create wealth.
Trust me,
the banks don't give a rat's ass how much money the government is pissing away on marsh mice, deer underpasses, turtle tunnels and political payoffs to Hillaries pards.
How do you know?
The CBO says so.
See, this is typical of the debate here - just repeating as gospel simple little cynical statements they hear on the bus. If you disagree with the CBO, present some evidence.
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