People keep writing and saying that there is a credit crisis because there is no money to loan. This seems to me to be incorrect. There is more money than ever. It is available to be loaned. It is begging to be loaned.
The problem is that there are few loans to be made with adequate prospects of being paid back and the rates of interest being charged do not justify the risk. Therefore no loans are being made. This is a different thing.
How can a problem be fixed if it isn't even properly identified? Our leaders are either lying to us or grossly incompetent. I'm betting there are some of each.
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