Recent studies indicate that in spite of popular thinking, there is no credit crunch.
Bank credit and bank lending are at all time highs. Companies with good balance sheets are having no problem in obtaining credit. The Libor Rate, which is a measure of lending activity, is down to 2%. Even economists at the Federal Reserve are baffled by widespread comments that the U.S. is having a credit crunch.
According to reports on the credit situation, it was only a few banks that got overextended and got into trouble, which then triggered the huge bailouts we have seen.
Now where do we go from here? There should be some kind of investigation as to the number of banks and which banks caused this mess. These bankers should be identified and asked to step down immediately. We no longer can tolerate such obvious misdeeds.
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