What incentive do lending institutions have to lend?
If the government is giving funds to these institutions, why would the lenders even bother to do business? Why would they take any risk when they're already reaping the rewards by not taking any risk?
Kauai, Maybe you're missing my point. Normally lenders make a profit by borrowing low and lending high. But, when they can borrow at 0% and still receive bailout money in the billions, why would they lend at all? They're making a profit, and not risking anything, by not lending.
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