Internationally recognized Forbes says bank loans have NOT dried up
Commentary
Bank Loans Have Not 'Dried Up'
Alan Reynolds 10.01.08, 2:25 PM ET
The frantic congressional push to "do something" about mortgage-backed bank investments has been widely defended with equally frantic claims that U.S. bank lending to business and consumers has been shrinking fast.
On Sept. 24, Congressional Budget Office Director Peter Orszag warned Congress that "short-term lending was virtually shut down." The following day, The Washington Post reported that "tightening [bank] credit conditions are already affecting some consumers and business." Just before the $700 billion deal was announced on Sunday, an alarmed Fox News anchor said, "McDonald's can't even get a loan." (That comment confused a few franchise owners with the company.)
On CNBC Monday, Democrat majority leader Steny Hoyer said the objective of the rescue package is to "unlock the credit" for consumers and business. And a Wall Street Journal editorial writer told CNBC, "Until we get the banks lending again, the economy will continue to contract."
--MORE--
Bank Loans Have Not 'Dried Up'
Alan Reynolds 10.01.08, 2:25 PM ET
The frantic congressional push to "do something" about mortgage-backed bank investments has been widely defended with equally frantic claims that U.S. bank lending to business and consumers has been shrinking fast.
On Sept. 24, Congressional Budget Office Director Peter Orszag warned Congress that "short-term lending was virtually shut down." The following day, The Washington Post reported that "tightening [bank] credit conditions are already affecting some consumers and business." Just before the $700 billion deal was announced on Sunday, an alarmed Fox News anchor said, "McDonald's can't even get a loan." (That comment confused a few franchise owners with the company.)
On CNBC Monday, Democrat majority leader Steny Hoyer said the objective of the rescue package is to "unlock the credit" for consumers and business. And a Wall Street Journal editorial writer told CNBC, "Until we get the banks lending again, the economy will continue to contract."
--MORE--