Comments on: Some Banks Are Rejecting Bailout Money http://amateurassetallocator.com/2008/11/04/some-banks-are-rejecting-bailout-money/ Amateur Asset Allocator Fri, 10 Feb 2012 18:16:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Curt http://amateurassetallocator.com/2008/11/04/some-banks-are-rejecting-bailout-money/comment-page-1/#comment-2169 Curt Tue, 04 Nov 2008 16:41:04 +0000 http://amateurassetallocator.com/?p=327#comment-2169 The pressure on the banks that take the fed money to lend it out is what banks don't like. There are so many better investment opportunities for banks right now, that they don't want to lend to people at low interest rates. Why lend someone a 6% loan to purshase a car or house, when you can buy up assets like commercial real-estate or a competing bank for 20 cents on the dollar? The Fed is not happy with banks who are choosing to use their money to for better investments rather then lending the money to people, because consumer confidence has tanked and without money - the economy will continue to decline. The fed is fighting against market forces. The pressure on the banks that take the fed money to lend it out is what banks don’t like. There are so many better investment opportunities for banks right now, that they don’t want to lend to people at low interest rates.

Why lend someone a 6% loan to purshase a car or house, when you can buy up assets like commercial real-estate or a competing bank for 20 cents on the dollar?

The Fed is not happy with banks who are choosing to use their money to for better investments rather then lending the money to people, because consumer confidence has tanked and without money – the economy will continue to decline. The fed is fighting against market forces.

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