Why aren’t banks lending?

Gee, maybe the same thing that ensured The Great Depression – FDR’s legislative onslaught – which produced uncertainty!

Since President Obama was inaugurated, Congress has launched one of the most ambitious legislative agendas in American history – proposals that would fundamentally transform the economy: from remaking the health care system, to a far-reaching set of taxes and regulations to combat climate change and remake the energy system, to a comprehensive financial overhaul bill that would fundamentally reshape the banking system.

How, one wonders, can borrowers and lenders possibly price the risk associated with the imposition of the massive new cap-and-trade system or other new environmental regulations? How could a start-up or growing company anticipate the costs to be imposed by the health insurance reform legislation? How can a lender make a loan today knowing that a new Bureau of Consumer Financial Protection or state attorney general might later decide the loan is “abusive”? Or what future taxes will have to be levied to fund our unsustainable budget deficits?

They can’t.

He nailed it – and HE testified before Congress. The promised Transformation by the O team and the Democrats is looking more and more like government takeover of everything in sight as the goal without fixing anything.

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