There is political meddling and too strict bank supervision adding to the bank- lending confused picture.
Banks are not making sufficient loans to small business, even when they have the ability to do so. They make more money by borrowing cheaply from the Federal Reserve and investing in government bonds.
Commerce is in a slump. But many viable, thriving businesses, especially commercial real estate operations, are genuinely seeking loans from banks who have funds.
Yet, too many lenders are hesitant about extending loans they once more readily made. Regulations and looming taxes are the culprits. (See the Earl J Weinreb NewsHole® comments.)
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