Bernanke’s Dilemma: Interest Rates or Nation’s Banks

Ben Bernanke and the Fed have allowed interest rates remain at a record low, which creates a prime environment for the nation’s banks to lend, bringing us one step closer to economic growth. With the economy still limping but said to be on the upswing, as well as a number of banks still healing from the recession, low interest rates are a blessing to many as it would bring in higher volumes of people seeking loans or refinancing. Interest rates are always said to “get ya” so now seems to be the time where the nation’s banks could learn from mistakes and begin giving home loans and business loans to people in need.However, lending has slowed over the past weeks and lack of credit flow will do nothing but cause the recovery to take longer and, worse case, even cause the economy to slip back into a recession. The nation’s banks have to be wary with the credit they extend seeing as how a major cause in the economic break down was loose loaning practicesand delinquency in repayment of those loans. So, the question is should Ben Bernanke and the Fed keep the national interest rate low in the hopes that banks will lend more or can the nation’s banks begin lending again with new restrictions in place for doing so and the fear of lending to a nation who might never be able to pay them back?
Now that the overall economy has turned around and banks are lending to consumers it is true that some of these individuals are starting to spend a little bit more cash.  In fact, many of these individuals are starting to search for things like Hialeah Florida WalMart Presidents Day Sales 2012 as discretionary spending is coming around.  If retail sales numbers include we could see a much strong economy in the very near future.

In the late part of January 2012 a large percentage of the American population will be concerned about the economy and taxes.  Some will start their search for 2012 IRS.gov 1040 Printable Tax Form Online in hopes of saving money by avoiding an accountant.  Taking the time to research all the IRS.gov forms that are available for free should save a significant amount of time and money down the road.