Recently, I had written blog post titled, "Wake up - If you did not already know you should". A key point in my view about expectation of "Credit Flowing" as soon as Banks had enough capital is that it is not a valid expectation as "Flow of credit should be tied to credit worthiness" and not somebody's ability to lend or that somebody feels he is entitled to credit.
"Part I: Geithner's Plan "Extremely Dangerous," Economist Galbraith Says" was the Tech Ticker interview with Prof. James Galbraith, The University of Texas at Austin on Yahoo! Finance today. I was surprised at how clearly he articulated that lending by banks will not resume unless the loans are provided to credit worthy purposes and that the American Consumer is saddled with debt and cannot take on any more debt.
Net-net, given what I heard and read today, my convictions around my post have become stronger. I strongly recommend every one reading this blog to listen to Prof. Galbraith interview and come to their own perceptions of the right medicine for the economic mess. I was humbled by some to the simple solutions suggested by him.
Happy reading and forming opinions
Thanks
Nagesh
The views represented in this blog are my personal views and are not a reflection of or opinions of any of the institutions I am associated with or have worked for.
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