You would think that with the banks unable to lend much money because of liquidity problems that they would want to attract deposits. For every dollar a bank has on deposit the Federal Reserve will print up ten dollars to lend the bank at interest rate that is today about zero. Instead the banks are paying as little as .05% on savings accounts; effectively a zero return.
This should have the Obama Adm. concerned. One of the reasons we got into this mess was that people couldn’t get a decent return on savings and went looking for other things to invest in. Things that turned out to just be a series of big bubbles that inflated the economy. This hid the fact that we didn’t make anything anymore. This also gave the Chinese the illusion that we could somehow pay for all the stuff we were buying from them.
Of course we are still buying a whole lot of stuff from China and we still have no way to pay for it. Maybe Obama thinks another bubble would be OK or maybe he has a plan or maybe he is too busy with other things. Did that pig just sneeze?