Thoughts from a Yellow Dog Democrat living in Olympia, in the great BLUE state of Washington

I am a liberal because it is the political philosophy of freedom and equality. And I am a progressive because it is the political path to a better future. And I am a Democrat because it is the political party that believes in freedom, equality and progress. -- Digby

Sunday, February 01, 2009

Banks Would Love to Make Loans

I'm so tired of the lies the Reputhugs are stating about we just need to get banks to start loaning again. Today on Meet the Press Senator Kay Baily Hutchison, between her chanting the refrain "cut taxes, cut taxes, cut taxes" also said:
SEN. HUTCHISON: ... I cannot step back from the principle that I think is so important for my constituents and for our country, that we would do a stimulus package that has job creation, keeping people in their homes, trying to get the financial institutions to get credit out in the marketplace, which it is not doing now, and ...

What alternative universe does she live in? NO ONE is standing in line to buy cars or homes. Car sales have plunged to just over a 10 million annual rate - the lowest rate since the early '80s recession. Home sales are the lowest since 1966. Circuit City can't get folks to come in even for their clearance sale. Retailers reported the worst December sales in decades. People are afraid for their jobs. People have seen their investments disappear and they are over extended and afraid. It has nothing to do with financial institutions being unwilling to lend -- financial institutions are experiencing dwindling loan-to-asset ratios. They have sub-performing loan portfolios and they can't get any yield in investments. They would LOVE to make good loans.

Kay Baily Hutchison should try to look at facts instead of reputhug talking points and if the media is going to fawn all over these reputhugs and put them on their shows, they should fact check and challenge them once in awhile.

DISCLOSURE: I have been a financial institution regulator for over 30 years.

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