Reply #69: Well let me try again [View All]

[abumbyanyothername]

The reason that banks aren't lending to each other or anyone else is because they feel that perhaps no one in the system is credit worthy any more.

The government can buy all the bad assets it wants if that is true, you still aren't going to get the banks to lend.

Nobody is going to lend until there is optimism about the future. There won't be any optimism until we begin to see some way in which the American economy can grow. The American economy cannot grow because we are not an net exporting nation.

Without going into it further, as you request, the crisis is financial, but the problem is economic.