When Will Banks Start Lending Again?

That is a great question and it seems that the government is trying to do too much at once.  The #1 priority needs to be to fix the banking system.  Here is another initiative the Fed has come out with from The Wall Street Journal.  “The U.S. launched a program to finance up to $1 trillion in new lending to consumers and businesses, in an ambitious attempt to jump-start credit for everything from car loans to equipment leases.  Much is riding on the initiative, known as TALF for Term Asset-Backed Securities Loan Facility. At the height of the credit boom, Wall Street issued more than $1 trillion a year of securities that were backed by consumer credit, and trillions more backed by mortgages. These markets — sometimes called “the shadow banking system” because they operate outside traditional bank activity — accounted for roughly 40% of all consumer lending before the financial crisis erupted last year. But the market dried up last year. Issuance of securities tied to consumer loans dropped to less than $8 billion in the final three months of last year.”

http://online.wsj.com/article/SB123609012856118765.html#mod=testMod