Yes, Let's Relax Those Lending Standards. That's The Solution!

clipped from proteinwisdom.com There’s lots of sobering news on the economy these days, but this piece competes for the most sobering of the summer: America Sliding Into a Pit of Foreign Debt. The graph below shows the United States net foreign debt. It hit an unprecedented $3.5 trillion, 24.3% of our GDP, at the end of 2008, according to a report issued on June 26 by the Bureau of Economic Analysis. CIT chimes in: CIT Group’s ‘Capital’ Was All Talk, No Trousers: Investors watched yesterday as yet another major financial- services company angled for a government bailout — this time unsuccessfully — while still sporting U.S. banking regulators’ highest capital rating. It’s a sure thing CIT won’t be the last. Mysteriously, Barney Frank could not be reached for comment on any of these occasions, possibly because he was still working on relaxing Fannie and Freddie lending standards. These things do take time.

Just like we need to spend more money to avoid bankruptcy. They're all on drugs as far as I can tell.