The Hill News

America spends more than it earns or saves, and thus faces a situation in which the credit system has been overextended. This starts with individuals and extends to the largest financial institutions. As regulators scratch their heads trying to figure a way out of this mess, they keep confronting the same problem. Sure, they can save the banks if they restrict lending and tighten the rules, but that leaves unsolved the problem of how individuals and businesses will be able to finance current spending as credit markets evaporate.

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