Ex-Lax for Bankers? The Banks Trump Keynes
By Betsy Ross
Oh, what to do about unemployment?
Try as it might to pump money into the economy and spur hiring, the Fed’s policy ain’t working. Don’t blame Keynes. For the stim to be effective, the cash needs to get to small businesses: the primary source of jobs in our country. Trouble is, the Fed’s counting on banks to circulate the extraordinarily low interest rate money it’s spouting.
The banks are hoarding the dough. In a recent New York Times article, Richard H. Clarida, a Columbia University economist, confirms that “bank lending, much of it to small and medium-size enterprises, has collapsed to an extent unprecedented in previous business cycles and continues to decline more than a year into recovery.”
As a small business owner myself, I can vouch for that.
Rather than take steps to ease the blockage, Fed Chair Ben S. Bernanke’s answer is to shove even more cash into our bloated system, as if making economic foie gras...
For the rest of this article by BETSY ROSS in ThisCantBeHappening!, the new independent alternative online newspaper, please go to: ThisCantBeHappening!