... click image for larger version.
... and an explanatory word from Mish's Global Economic Trend Analysis:
Why Banks Aren't Lending
Money was given to banks and many members of Congress are asking for banks to increase lending. I suggest that instead of attempting to force banks to lend, that Congress seek reasons why banks are not lending. Here is the answer.
1. Banks are still insolvent after all those capital injections. There is simply no capital to lend. Book values of banks, if credit were to realistically be marked to market is negative.
2. There is no reason to lend. What do we need more of? Cars? Pizza Huts? Houses? Nail Salons? Malls? Furniture? What? Nothing is what.
3. There is no consumer demand because there are no jobs. Since there are no jobs (or significantly fewer jobs) banks are unwilling to extend credit to consumers with less of an ability to pay it back.
It is a serious, serious mistake to force banks to lend at this point. All it will do is increase bank writeoffs.
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