White House: "Banks Need To Stop Hoarding Money"

Here is an important announcement from the President Bush "Banks Need To Stop Hoarding Money"

The transcript below contains several important clarifications from the original message from press secretary Dana Perino. Please read carefully.

Tuesday October 28, 3:27 pm ET
White House tells banks getting federal aid to quit hoarding money and start lending it.

An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans.

Lend For America Plan

"We're trying to do is get banks to do what they are supposed to do, which is support the system that we have in America. And banks exist to lend money," White House press secretary Dana Perino said.

We have given banks every incentive to move forward and start lending money. In fact we demand it." Perino said.

Under the authority of the $700 billion financial bailout plan approved by Congress and signed by President Bush earlier this month, the Bush administration plans to dole out $250 billion to banks in return for partial ownership.

"Taxpayers will make billions when this plan succeeds. It's a 'win-win can't fail' situation. The more money banks lend the more money banks will make. It never fails. And the beauty of the plan is taxpayers benefit. If it looks like the plan is not working it's only because banks are not lending enough."

If You Build It Customers Will Shop!

"Banks are not lending money fast enough to suit us" Perino added. "We will not be satisfied until every penny is lent out. Lord knows we need more nail salons, Home Depots, Lowes, Pizza Huts, strip malls and appliance stores. This is simple supply side economics"

Treasury Secretary Henry Paulson has said the money would be used by banks to rebuild their reserves but President Bush will have none of that.

Who Needs Reserves When You Have Printing Presses?

Federal Reserve chairman Ben Bernanke chimed in with "Who needs reserves when you have printing presses?"

"The Whitehouse fully endorses the statements of chairman Bernanke," said Dana Perino while rushing off the mall to show Americans what they seem to have forgotten in this minor economic blip.

"Shopping made America great, and credit cards keep it that way. It is the patriotic duty for Americas to shop in these trying times. We are in the mess only because consumers are not shopping and banks are not lending."

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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