Banks Flooded With Cash They Can’t Profitably Use
Bankers have an odd-sounding problem these days: they are awash in cash.
Droves of consumers and businesses unnerved by the lurching markets have been taking their money out of risky investments and socking it away in bank accounts, where it does little to stimulate the economy.
Though financial institutions are not yet turning away customers at the door, they are trying to discourage some depositors from parking that cash with them. With fewer attractive lending and investment options for that money, it is harder for the banks to turn it around for a healthy profit.
Boo hoo hoo. Such a sad story. We’ve screwed up the economy so badly that we can’t make piles of money on our piles of money. Boo hoo hoo.