Why aren't the banks loaning money?!!? I mean literaly giving it out in droves?

[uponit7771]

Why?

Because this whole issue with the "Credit Markets" is BUNK...

Banks make money buy lending money, why the hell aren't they lending it and instead buying up other banks and sureing up their "dividends"?!!!

Anyone else see any of the "shock doctrine" being applied here?

Thx in advance for your input

[cyberpj]

1. Because things are so bad they don't expect people to be able to pay it back anymore now.

At least that's the official line.

I expect your assessment is closer to the truth.

[uponit7771]

6. That's what I've heard as if there's NO securities out there with decent financials!! FLEX is 50%...

...cash right now and it getting smacked by US consumers tight pockets.

They can lend to those guys to capaitalize price reductions and get something started but I don't see them breaking their necks to loans anyone anything

[msallied]

2. They are only lending it to people with superb FICO scores

Because the banking crisis was CAUSED by mass loan defaults. Obviously their standard trade was no longer benefiting them.

[uponit7771]

7. I'm not talking mirco I'm talkin macro, I mean the 100mill blocks of money and stupid low interest

...rates for operating capital to companies like Tezla motors etc (they're making the "second" electric car") there's no reason why this company shouldn't be able to borrow around 100,000 million a quarter seeing that the balance sheet would give that back and more.

[spanone]

3. read this: naomi klein 'The New Trough'

http://www.rollingstone.com/politics/story/24012700/the_new_trough

[Democrats_win]

12. Thanks for the link! This Rolling Stone article is amazing.

[paparush]

This whole Bailout is textbook Shock Doctrine

Ignore the problem until it becomes a "crisis of biblical proportion"
Convince everyone that we must act NOW to save world (and the kittens).
Pull pre-written legislation off the shelf (hey, we call this being prepared).
Ram through legislation after laying down a sizable foundation of FEAR (one of the few skills Bush** has mastered)!!!!!!

==PROFITS for the already rich!

[Occam Bandage]

5. Klein proposed that after economic shocks,

the moneyed class pushes through acts that seem like short-term benefits for society, but in actuality are long-term pushes for deregulation and minimized government interference in markets, leading to purer capitalism.

After this economic shock, Congress pushed through an act that seems like a short-term benefit for the rich, but in actuality enacts greater regulations and increased direct government interference in markets, leading to restrictions on capitalism.

So, you know, you couldn't be more wrong if you were actually trying to make a point that was 180 degrees from reality.

[paparush]

21. Zero transparency, limited oversight and accountability

with banking players enforcing regulation does not fill me with confidence.

I stand by my assertion that the Bailout, much like the Patriot Act, is textbook shock doctrine.

[uponit7771]

9. Yeap!! When I heard Wells Fargo is suring up "dividends" with the money I KNEW there was something..

...wrong!!

[Occam Bandage]

4. Wow, a twofer.

Both an utter failing to understand basic macroeconomics and a complete failure to see how the post-collapse deregulatory push theorized by The Shock Doctrine has not remotely occurred here.

I love the scintillating, informed debate DU offers.

[uponit7771]

10. Your answer to why banks aren't lending? Thx in advance

[olkaz]

23. Thank you for this. A little of my faith is restored. n/m

[boomerbust]

8. They are using that cash

to buy other banks. The only one that will be left standing is Goldmann Sachs.

[uponit7771]

11. ...don't forget Chase and Wells Fargo. Fargo is using the cash to sure up "dividends" which is crazy

[Cronus Protagonist]

15. "shore up" - And I was of the understanding that Wells Fargo is NOT in crisis

In fact, I heard they bought or were going to buy one or more other banks using their own money because they do NOT have mountains of bad real estate loan "assets" on their books.

[uponit7771]

18. yes, but Paulson gave them a deal they couldn't turn down. If you could get 25million with .5%

...you'd take it in a second but they're not lending with this money.

Wells Fargo is an example of why Paulson should be thrown in jail, I don't trust that guy anymore.

[Cronus Protagonist]

22. Man, I wish there were a source for these assertions

I'd like to see it. If true, that's even worse than what I thought the bailout was going to be.

[Democrats_win]

13. Morgan Stanley to pay themselves $10.7 Billion (much in bonuses) this year.

http://www.rollingstone.com/politics/story/24012700/the_new_trough/print

snip:
"And the folks at Morgan Stanley? They're planning to pay themselves $10.7 billion this year, much of it in bonuses — almost exactly the amount they are receiving in the first phase of the bailout. "You can imagine the devilish grins on the faces of Morgan Stanley employees," writes Bloomberg columnist Jonathan Weil. "Not only did we, the taxpayers, save their company...we funded their 2008 bonus pool."
---

[uponit7771]

14. Yeap, these people are DISGUSTING!!! They've done NOTHING to help mainstreet. Screw Paulson

[On the Road]

16. I Just Borrowed $21,000 with 0% Interest for a Year

to pay off some other debts. Of course, I've had the same employer for 23 years. I expect people who work in hard-hit industries like retail, or are otherwise likely to get laid off, don't get their loans approved.

[uponit7771]

17. Not talkin about small cash talking about 100's of million of dollars

[EstimatedProphet]

19. They are, just not to the likes of us.

[uponit7771]

20. No they're not, interest rate on 3 month LIBOR is still pretty high & if they were lending like they

..should be CC doesn't have to go out of business or declare bankruptcy.

They're lending with high interest rates because they don't trust anyone but that's not what they were given the cash for.

[slackmaster]

24. I take it you aren't white

They keep shoving the stuff in my face every time I go into a bank.

[uponit7771]

26. Nah, not white but I can get stupid cash right now but the 4 billion dollar company I work for can't

...at the relative cheap prices and amounts I can.

For instance, it cost the company MORE to borrow 100,000 million dollars than it does me to borrow 10,000 dollars and that's because the interest rate on the 3 month loans isn't low enough. Why? Because the banks want to make themselves a little cash at our expense, yeap...the cost of no transperancy.

Also, the CC companies are going bat shit right now because Americans stopped spending...of course they're shoving cash in our faces because they want us to use their money.

Right now I don't like the CC's, they can go to hell.

[Waiting For Everyman]

25. The banks should've been nationalized.

Then we could've direct lended as needed - to everyone.

This is like trying to drive from the back seat. It won't work. It'll come to nationalizing them anyway, after a ton of money goes to making the wealthy wealthier first. I said that before, and so did lots of other people, but of course we were wrong. :sarcasm:

[uponit7771]

27. The Feds ARE direct lending to companies like GE etc but screwing GM and your right...

...we don't have ANY control over what Paulson does right now.

More money for the rich and war but no more for the poor