The Federal Reserve System is paying banks not to lend money under an Obama era policy. Banks can often do better holding reserves on which the Fed pays interest rather than lending to private borrowers. In 2008, banks held 14 cent of reserves for every dollar of checking account deposits. Today that number is $1.31.
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John C. Goodman is President of the Goodman Institute and Senior Fellow at The Independent Institute. His books include the soon-to-be-published updated edition of Priceless: Curing the Healthcare Crisis, the widely acclaimed A Better Choice: Healthcare Solutions for America, and New Way to Care: Social Protections that Put Families First. The Wall Street Journal and National Journal, among other media, have called him the “Father of Health Savings Accounts.”
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