Why Banks Aren’t Lending: Weak Economy, Regulatory Uncertainty

Unless American Banks start loaning money interest free, the more sophisticated consumers and investors of the world will continue hoarding their pennies. That is the real revolution going on in the global banking sector. The bankers have lost control of stock prices, interest rates, and dominating peoples lives with money and interest rates.

All americans should remove their money from banks and join a credit union. These thieves profited from all these bad loans paying their executives millions in bonuses and getting almost no fines. Now they get free money and make it next to impossible to get a loan. The only institution that is less functional than banks is Congress.

Does anyone out there realize that the current system is not working! Ron Paul 2012

Banks are not lending simply because Banks/Wall Street are sabotaging Government! Military Control the GD Wall Street!

It is because of the Federal Reserve Bank. Banks have no penalty for holding on to their troubled assets and reserves because they get free money (0% interest rate) from the FED. They do not need to lend it out for now, because they can make a very safe rate of return and profit (3% on a 10 year notes) on their money by buying treasuries on money borrowed at 0% interest rate from the FED instead of having to take risks to lend it out to businesses.

Banks are not lending because they are using TARP money to buy real estate property at huge discounts. In other words they are using the tax payer money to buy foreclosed properties at the auctions, they are investing in real estate. They are the new land barons.
Hence no money will be lent to small buisness or potential home owners.

Banks aren't landing because they can not make decent return on their lending compared to the risk. These are businesses and they want to make a profit. If it is profitable, they will lend. There is always some who wants to borrow. Whether they will return the money and interest is for the banks to decide.

The Feds are manipulating the market- PERIOD! Your 401(k) $ is being stolen from you, but dont touch it because it will eventually come back- better to put more into it. The Feds want you to sell low, so the hedgers can buy low. Watch out for the POP in the next qtr and the hedge funds get rich.

The robber barrons were not unlike the Wall Street'ers today. They owned Senators and Representatives. Wall Street discovers a scheme and the politicians makes it legal. Wall Street saw money in each house, equity. They decided to get it. They pushed the scheme down and the system of real estate agents, now they call themselves brokers, bankers and every salesman there was did the rest. Refi. your house, take the equity and this nice little harmless adjustable mortage. It will pay for itself. You can have this or that. Wall Street doesn't have industry to invest in. It is in China. Now they are at it again, "It's your money," so they pay pennys on the dollar, bundle, sale and resale the structured settlements just as they did mortages. Banks don't need to make loans, they are on the market, did I say the MARKET just as they were in 1929. Wall Street is floating on money but America is to risky of an investment. American worker are too expensive. Economist, where was your voice in 1998 and 2005? Shouldn't economist be very, very rich. I am confused.

If the big banks are in good shape why not go to mark to market on their assets. This would assure the skeptics like me that thay are in good shape. Saying and believing are two different words. Still think the legacy bad debt is quite larger than we are being told. I would reinstate the Glass-Segal act or we will continue our boom and doom markets.

For all you super smart economist out their take notes from the master.The financial world as we know it is doomed .For years greed has been the search engine for our current global economic woes.Welcome to limbo.This is where we can't go forward and can't go back.Prosperity is over for all.Crime will escalate under the coming republican rule,Where no government under the sun will be able to controll it's people.Only solution is to curb cheap labor outside Us borders.Next is to stop ALL ILLEGAL IMMIGRATION OF ALL TYPES NOT ONLY IN US BUT EVERYWHERE! And last but not least slow or make companies have 1 human worker for each machine or robot.Or game is over ladies and gentlemen.GOOD DAY.

Because they have NO INTEREST is loaning money at 4% when they can invest our tax dollars in the stock market, loaned at zero percent. If they lose the gamble the taxpayers bail them out. While loan when you can gamble for BIG BONUSES?

When banks do lend they are ripping people off. I love how US Bank puts in a $13k prepayment penalty as they charge .3 % above market rate for a recent mortgage. Banks are scum that cannot be trusted. I'll never use a bank. If I ever meet a US Bank executive I will take their head off.

Because it's more profitable to invest it in the market and stock pile Gold. Why lock in a 30 year mortgage at 4%, when they were able to gamble with the bailout money and get 15-30% returns. 11% of the Federal Reserve's assets have been in Gold from financials taken back in 07'. They've made a nice profit not only on the gold, but the interest they're collecting on $16 trillion of bailout and stimulus money that was created in the last 4 years. Private bankers getting richer on both sides. If they debase the dollar their gold goes up and if they create more money because the government overspends they make more money. So why aren't the banks lending to us? Because they weren't given guidelines and rules to abide by and they're business men going after the bigger return. Pretty simple..

These pundits such as Peter Gorenstein write much #$%$ just to hide the truth from the general public. I beleive they must get a nice check from the banks every time they write this crap. Peter Gorenstein check on what the Banks are doing with their money. all the big banks have subsidiary companies which are buying up real estate at rock bottom prices at real estate auctions amounting to billions of $. They used TARP money which was tax payer money to do this and they are still buying property at auctions. That is why they do not want to lend to the public. The talking heads such as Aaron Task and Henry Blodget are in the same category. Wise up people!

What a typical bunch of conservative idiocy. They need regulatory certainty and a lot more of it. Make them adhere to standards that make sense, tax them for sitting on cash and not lending it to startup companies and those needing just a little help to stay in business. They didn't mind throwing Trillions of $ away on fraudulant home loans

People if you wanna make the wall street driven government and wall street itself sit up and pay attention you are gonna have to stop investing, stop spending any money other than for bare necessities ... Once they feel it in their wallets and begin to listen and make changes ... spending can begin again. No more talk ... Show actions in your spending. We are the country that buys, not the country that produces so use that against them. If anyone is gonna ruin our economy and country it should be us not them. Don't give up on our country or our children so easily ! Repost if you agree !!!!

why banks should lend if those people can't afford? The democrats had set some laws and forced the banks to lend the money to those people couldn't afford, which is why this crises came!!!

ALL THESE BIG BANKS SCREW THEIR CUSTOMERS EVERY CHANCE THEY GET. EXCEPT FOR TOP TIER MANAGEMENT THEY PAY THEIR EMPLOYEES PEANUTS.THEY ALL BELONG IN THE TRASH HEAP WITH LEHMAN.

If the banks lend the very visible depression they want going into the 2012 election won't show up as certain. Only after Obama loses having been blamed for the depression when a repub prez and congress are in and jobs, wages and benefits fall further will there be bank lending .