Tim Geithner, Treasury Secretary nominee, is talking about securing the supply of credit (lending).
That's good. That looks like last year's goal, though, despite it continuing to drag into this year.
Now, of course, it is the demand for credit that is going into a spin, potentially a very serious one, largely due to Bush-Paulson's inability to address the root problems, early, decisively, and comprehensively (even after a crisis developed).
A strong banking sector may be necessary for a full recovery, but it is no longer sufficient, whether an American banking-system at full strength is even possible (in a downturn, there is so little chance of a 100% 'clean' balance sheet, right?).
Wednesday, January 21, 2009
The Supply of Credit and Other Edible Delights
