Paul Krugman Can't Make Up His Mind On Bank Lending
On the one hand he claims that banks are "too reluctant to lend". Before we go to his other assertion, we must ask ourselves, just to whom are banks reluctant to lend? Most likely to loan applicants deemed risky.
But on the other hand Krugman also says that "financial reform" (whatever that is supposed to mean) is desperately needed, or otherwise banks will start taking risks.
First he argues that banks are too reluctant to make risky loans and then he argues that we need to act to stop them from making risky loans.....