In response to:

Can Bernanke Force Banks to Lend?

Joseph64 Wrote: Jul 14, 2012 10:55 AM
Banks have no incentive to lend money to the general public. Interest rates are too low for them to take the risk and the regulatory environment is against them. Why would they extend 30 year mortgages to families only to have them walk away in a few years and be unable to repossess the home because the law forbids it? They are better off to put the money they do have into short term government securities then rolling them over as they mature. There is zero risk and they preserve their capital for when times are better and they can get more reward for taking risks.

Several readers have ask me to comment on a King World interview of Michael Pento.

Before I offer my comments on Pento's thoughts, let me say upfront that Eric King is a world-class interviewer. King lets his interviewees have their say, no matter what it is.

It is up to listeners to decide whether the message makes any sense or not. King merely wants the position to be well stated.

Email Request From US

Hello Mish:

Have you listened to Mike Pento's scenario where the FED will cease to pay interest on reserves held at the FED, as a result, forcing...
Related Tags: banks