The Obama administration says it wants to help business. One way is to loosen credit. At the same time, however, the Obama administration is creating regulations which will overhaul big bank credit.
This means many bigger banks will receive lower credit ratings. Should they do, they will have to borrow at higher cost in the bond markets. Moreover, the regulations will not have any practical effect in making banks more secure.
The administration cannot have it both ways. The media go along with the charade, and give the administration a free pass.
So far, surprisingly, the markets allow big banks to borrow more cheaply than smaller banks. This means that the market feels that big banks will be bailed out once again by Uncle Sam, no matter what the Obama administration has been saying. ( See the Earl J. Weinreb NewsHole® comments.)
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