US bank lending still shrinking: Bernanke

[OhioChick]

Source: Economic Times of India

6 May 2010, 2022 hrs IST,AGENCIES


WASHINGTON: The head of the US Federal Reserve Ben Bernanke on Thursday warned that US bank lending was still shrinking despite massive government efforts to kick-start economic activity.

Speaking one year after the Fed imposed "stress tests" on banks to rebuilding confidence in the system, and after massive government bailouts, Bernanke said the outlook still remained patchy.

"By setting reasonably ambitious capital targets, we hoped also to hasten the return to a better lending environment," he said in a speech in Chicago.

"Clearly that objective has not yet been realized, as bank lending continues to contract and terms and conditions remain tight."


Read more: http://economictimes.indiatimes.com/news/international-business/US-bank-lending-still-shrinking-Bernanke/articleshow/5899353.cms

[Demeter]

1. You Betcha!

Unemployed people don't go into debt, and neither do bankrupt businesses.

[avaistheone1]

2. So in other words the bailout didn't work -

given the primary reason for the urgency and necessity of the bailout was to get credit and lending moving.

[ihavenobias]

4. Many people have maxed out their credit cards and tapped out their houses for money.

No collateral = No lending.

They focused on rescuing the banks instead of the real economy. Sadly there have been no new regulations on Wall Street and no talk of addressing the wage/productivity gap, etc. I'm expecting a D+ financial reform bill and even that only addresses half the problem.

[corkhead]

3. They are too busy pumping up the stock and commodity futures markets with that money

to keep any around to loan out.

[benld74]

5. Chase just refused a refinance on my home, AND their appraisal was in error to boot!!

Appraiser missed a full bath and 1/2 which would have raised the appraisal to place us in acceptable % range.
They refused the loan and they refuse to do another appaisal.

[ChromeFoundry]

6. no shit n/t