I hear and read all the time how there is money being held in the corporations and the banks, but banks aren’t lending and businesses aren’t spending. That’s one reason given for the recent round of quantitative easing known as QE3. Here’s a thought by Conrad Black on why the money is stuck in the banks and businesses:
From my most recent NRO article, on the president’s failure to get the budget under control, and the country’s broader economic problems: “There is a capital strike because the institutions and people that have the money, largely low-interest deposits from the Federal Reserve (nearly $2 trillion in four years), know that the economic recovery is fragile if not an outright mirage. The economic figures in the administration who enjoyed any credence, Paul Volcker and Larry Summers, are long gone, and the present Treasury secretary, Timothy Geithner, is a cigar-store Indian who never speaks, and the Federal Reserve chairman, Ben Bernanke, speaks in jargon and repetitively while thumbing his Keynes and his nose as he fights the Great Depression of the Thirties. There is no recovery because there is no confidence.