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	<title>Comments on: Consumers Aren&#8217;t Confident</title>
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		<title>By: Web Smith</title>
		<link>http://www.fitsnews.com/2008/10/28/consumers-arent-confident/#comment-40028</link>
		<dc:creator>Web Smith</dc:creator>
		<pubDate>Tue, 28 Oct 2008 19:41:51 +0000</pubDate>
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		<description>In a healthy economy, banks create loans from deposits made by the population.

This is significant in that it demonstrates that the population has the money to buy goods and services.  Because goods and services are being purchased, banks are willing to loan businesses money.

When too much of the population&#039;s money is taken to pay interest, less goods and services are purchased, businesses sell less, and banks are less willing to loan them money.  Of, course, this downward spiral continues until the disaster becomes evident when the pain trickles up.

No amount of money thrown at the banks is going to fix this. The population has to recover first.

http://ewebsmith.com/Finance/hiddendemon.html</description>
		<content:encoded><![CDATA[<p>In a healthy economy, banks create loans from deposits made by the population.</p>
<p>This is significant in that it demonstrates that the population has the money to buy goods and services.  Because goods and services are being purchased, banks are willing to loan businesses money.</p>
<p>When too much of the population&#8217;s money is taken to pay interest, less goods and services are purchased, businesses sell less, and banks are less willing to loan them money.  Of, course, this downward spiral continues until the disaster becomes evident when the pain trickles up.</p>
<p>No amount of money thrown at the banks is going to fix this. The population has to recover first.</p>
<p><a href="http://ewebsmith.com/Finance/hiddendemon.html" rel="nofollow">http://ewebsmith.com/Finance/hiddendemon.html</a></p>
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