The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

A new Bloomberg View editorial says it’s time for banks to lend more money and catch up with the economy:

There are tantalizing signs that the worst of the disastrous credit crunch may be over. The most tangible evidence can be found in the latest earnings reports from some of the U.S.’s largest banks.

With a few exceptions, financial institutions such as JPMorgan Chase & Co. and Wells Fargo & Co. reported increases in lending to big businesses and, to a lesser extent, to consumers. Since consumers power growth, making up about two-thirds of the U.S. economy, their ability to get credit may determine whether the fragile recovery endures.

There are several things regulators and banks can do to ensure that the lending revival doesn’t fizzle. Although many bankers might disagree, regulators should continue to press banks to increase their capital. As we have argued before, more capital gives lenders a greater cushion to absorb losses, thus lowering risk to the financial system and the economy.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

How To Stop Monopolies From Milking Us Dry

Photo by Dan Ordze on Unsplash

For the past several years, monopolistic price fixing by two multibillion-dollar milk processing behemoths — DFA (an outfit deceptively named Dairy Farmers of America) and Dean Foods — has squeezed thousands of dairy farms out of business, paying farmers less for a gallon of milk than it costs them to produce it. The Big Two controlled some two-thirds of all raw milk processed nationwide, essentially forcing farmers to sell on the processors' terms.

Last year, then-President Trump's Justice Department ("justice") allowed the $14 billion DFA empire to devour the $8 billion Dean conglomerate, leaving individual farm families at the mercy of one domineering colossus. DFA now controls 70 percent of our nation's entire raw milk supply.

Keep reading... Show less

Close