Why Lender's On Strike..? Chicken and Egg

Who is the first..?

The Jackson Hole, is an Important place for the US and International Banking Industry, and More so, from Last year. Markets were looking Hungrily for more stimulus, or feeling of Stimulated by moves, by Dr Bernanke, who never disappoints them. But, all this stimulus are ending in short term, upsurges and then, disappointments all over. No doubt, the expectations and stimulative messages, are creating ' Hopes ' alas for short time. They are not working where they are supposed to act. Its like a patient on Ventilator, no sooner Ventilator is removed the patient is still gasping. 


The Three major area where its not working are 1) Housing 2) Employment 3) Credit Demand and Bank Lending.
One and all , are wondering, as to why banks are not Lending, Inspite of interest rates being so low are say Lowest, for such long time..? The treasury incomes falling from the Cliff and Lying Low..? Why, they are not throwing the Money out of the Vaults and why People are not borrowing Money, even though the money is now almost available, for nothing. 


Why Lending Is So Dry..?
The most Important reason and quite a simple one is Lending is not Profitable..! Simply, no Lender would like to Commit the Money, now When the Interest rate is the Lowest. and Can't Go Down, any Further.
Any other way, every one is expecting and therefore Wants to start Lending When Rates Pick Up.


Lenders on Strike


No One Wants to Lend Money at a rate, which is near 0 %  and FED is determined to Kick-start the Economic Cycle by Easy Lending.


As, the Stand Off, Continuous Dr Bernanke has played Hard Ball of declaring the Low rates Upto 2013.

It'a All a Chicken and Egg game.