How Politics Affects Bank Credit

    

Banks are not making sufficient loans to small business, even when they have the ability to do so. They make more money these days by borrowing cheaply from the Federal Reserve and investing in government bonds.

           

Also, there is political meddling and too strict bank supervision adding to the bank lending confused picture.

           

Some banking groups are now complaining that they have the money to lend, but with few takers because of the recession.

           

Yes, 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. A solution? Clearer tax laws would help. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)