A New IMF report states that banks need more capital in order to start lending again. This does not come as a surprise because most economists have predicted that this is a necessary part of economic growth. My warning: unless more stimulus is given states will have to cut budgets and banks will freeze lending. That will hurt the economy more. I am not an economist, but I think that it would be best to put at least some capital into the economy such as another smaller stimulus package. Though this view is a minority one, I think that is a necessary venture. The IMF estimates that $69 billion is needed in capital to stimulate banks.
With the President’s political capital diminished gets getting actual capital is very slim.
IMF Report Article: http://www.bloomberg.com/news/2010-07-30/imf-says-u-s-banking-system-might-need-as-much-as-76-billion-in-capital.html
