Nuff Said on Bank "Hoarding"

These are lifted from Mish, and explain why banks aren't lending to the folks clamoring so loudly for more credit...



The problem isn't a credit crisis, it's a solvency crisis. Banks would be insane to continue their profligate lending to people who're already as indebted as the average US'ian. And for those who want the state to step in and rescue people from the results of our collective fiscal insanity (and who clearly haven't read Hayek), don't forget that the tax revenues that people what increased to bail people out have to come from the same people who're feeling the debt squeeze to begin with.

Expect more calls for folks "hoarding" money in their savings accounts to invest like good little rubescitizens. In the meanwhile, the only way out of this mess will be massive reductions in consumption that will be necessary to accumulate the savings needed to pay back all that debt, with the side-effect of demolishing a large chunk of the consumer-oriented industries and their suppliers.

At least most of you don't live in the land of Wimpy (California, that is, who's voters think "I'll gladly pay you Tuesday for a hamburger today" is sound fiscal policy. Ugh.), and won't have to watch your state hand out dubious IOUs instead of wages & tax returns.