BANKS TOLD TO START LENDING

From the desk of:

Rich Storey
Mortgage Advisor
615.260.8028


As Wall Street soared nearly 900 points on Tuesday, the White House began to push both banks and financial institutions to quit hoarding billions of dollars flowing into their vaults and start making more loans.

Hoping to thaw the credit freeze that has chilled the economy, the Bush administration sent banks an unmistakeable message to put aside fears and open loan windows. The White House is attempting to jump start a stalled economic system by making more money available to both cash-starved businesses and consumers who have pulled back on spending.

White House press secretary, Dana Perino, was quoted as saying, "What we're trying to do is get banks to do what they're supposed to do, which is support the system that we have in American. And banks exist to lend money."

As the election creeps ever-closer, the American economy is caught in a whirl-wind of anxiousness and uncertainty.

Perino went on to say, "The way banks make money is by lending. And so they have every incentive to move forward and start using money this money."