Why Banks (still) Aren't Lending (0905)
Taxpayers want bailed-out banks to make loans and goose the economy.
But given the depths of the economic mess, that's the last thing the banks should do.
It doesn't matter what type of loan; lending into an economic downturn is an invitation to trouble.
What critics fail to acknowledge is that we all benefit from banks adhering to lending standards.
When that doesn't happen, we get financial collapses that compare to the darkest times in our history.
