Wrong.

Editor,

Just as corporations are sitting on mountains of cash and not investing it because they have no need for new plant and equipment or employees, banks are sitting on a mountain of cheap money that the Federal Reserve has made available to them but the banks are not loaning because businesses do not need it and consumers are too indebted to borrow.

So not only are the disingenuous Republicans pushing fiscal policies that are 180 degrees at odds with what our economy needs, but the Federal Reserve is also pursuing monetary policies that make zombie banks look profitable but rob the American people of purchasing power and adequate interest on their savings.

Banks do not lend after and because they receive infusions of capital. They borrow infusions of capital after and because they have lent.

It is still not too late to nationalize miscreant banks, prosecute miscreant banking executives, and bail out mortgagees instead of continuing the wrong-headed policies of Timothy Geithner and his predecessors.

Re: "Phony Fear Factor" (9/30/2011)