Explanation as to why US needs to keep propping up their banks
There is certainly many people on both sides of this debate, but I think this article makes it clearer for me.“No, more credit will not make the problem go away. But yes, the government should do its best to restore bank lending to prevent an even worse economic outcome”.“U.S. Treasury Secretary Timothy Geithner was only the latest to proclaim what has now become an official mantra. Without credit, which he and others call the “lifeblood” of the economy, you can kiss recovery hopes goodbye.”“Federal Reserve Chairman Ben Bernanke, justifying the massive help the central bank has offered to financial institutions, made his own case: “This disparate treatment, unappealing as it is, appears unavoidable. Our economic system is critically dependent on the free flow of credit.”
