Monday, November 24, 2008

To Fix The 'Credit Jam' Regulators Could Lower The Capital Requirements

but for those banks which increase their volume of lending, and in proportion as they do so. This would bring back home equity lending on a much larger scale, as there would be two ways to compete. One being to be the sounder and more likely to take over other banks, and the other being to increase lending for the consideration, and gain revenue while being under less-strict rules. The risks of inflation and unsoundness are obvious but perhaps not greater than alternatives.

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