Banks to Sit on Cash
In the US, bankers are admitting that they will likely sit on most of the cash that they’ve received from their government, mainly because ‘no one is going to lend a nickel until the economy turns’.
So, as the media hyped up the ‘crisis’ and my dad nearly had a stroke because of the stress levels it induced, banks are going to sit on the sidelines and weather the storm … that they created.
In Canada, the Conservatives responded by handing over $25 billion in cash to the banks in exchange for questionable loans, freeing up assets to improve the level of liquidity. Again, are they just going to sit on this cash while the economy dwindles? If they are, what will it take to get them to mobilize and invest this money in Canada?