Joe Nocera, NYT, has a good column today:
I see articles from time to time (CNN had a story on this recently) with small business owners constantly saying save the tax cuts, give us working capital we can afford. I’ve also seen numerous economists write that one of the big problems is that the banks, who were the beneficiaries, collectively, of more than a trillion dollars in public subsidies – TARP and the Fed’s quiet support (see my August 22nd post, “Bloomberg News Blows the Roof Off,” if you don’t know what that “support” comment is all about – have refused to then thank America by loaning money again, preferring to pocket the cash.
Our economy is like a shark – in several ways, but more on that another time – in that it must keep swimming to survive. Capital flows have to well, flow, or the whole thing shuts down.
Not to sound like a broken record, but the banks’ refusal to be partners in recovery, along with the non-financial private sector sitting on nearly $2 trillion it refuses to invest, has one hell of a lot more to do with the stalled recovery and high unemployment than the freakin’ deficit.