Wednesday, February 11, 2009

Bankers to appear before dubious Congress

One of these bank bosses ought to set these lawmakers straight once and for all by saying, "Banks don't lend their reserves or their capital so the money you gave us is not for making loans according to the government's own rules! If you want it to be that way then change the rules or eliminate the banking system entirely and have the government lend to every household and business in the country. In addition, loans are a function of demand, which is collapsing. So if you want to see more lending, then you'd better figure out a better way to boost the economy."

They won't say that because they'll lose their jobs.

The closest anyone will come to saying that is Jamie Dimon, CEO of JP Morgan.

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