tag:blogger.com,1999:blog-28228246.post5620497513840041291..comments2023-03-31T11:01:00.683-05:00Comments on Creative Advance: As in 1930s, Will Banks Lend Federal Bailout Dollars Until the Government Forces Them?Gerald T Floydhttp://www.blogger.com/profile/10786063941138911901noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-28228246.post-46672588706707615352009-01-06T17:54:00.000-06:002009-01-06T17:54:00.000-06:00Trying to force banks to lend is a bureaucratic ni...Trying to force banks to lend is a bureaucratic nightmare, I think. And having government get bogged down in lending to individual householders or businesses is just not an activity suited to government. I suggest the solution lies in a tool we have at our disposal which they did not have in the 30s, namely that we now know how to boost economic activity by any amount we want: to put it crudely, by printing money and dishing it out to households. Governments are starting to do this as of Jan 2009. This should boost economic activity in due course, which in turn will increase the number of profitable lending opportunities for banks, which will itself boost activity even further.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com