Comments on: Why Banks Aren’t Lending http://dailyreckoning.com/why-banks-arent-lending/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sun, 27 May 2012 09:55:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: John Corey http://dailyreckoning.com/why-banks-arent-lending/#comment-39306 John Corey Wed, 18 Nov 2009 14:57:16 +0000 http://dailyreckoning.com/?p=20271#comment-39306 It makes sense for banks to be hoarding capital while they sort out their balance sheets. The idea that they want to lend when the regulators are climbing over their books looking for trouble makes little sense. As noted the consumers and businesses are not all that interested in borrowing unless they have pressing problems or the capital comes with few strings. It will be a while before we reach the 'new normal'. It makes sense for banks to be hoarding capital while they sort out their balance sheets. The idea that they want to lend when the regulators are climbing over their books looking for trouble makes little sense. As noted the consumers and businesses are not all that interested in borrowing unless they have pressing problems or the capital comes with few strings.

It will be a while before we reach the ‘new normal’.

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