Crowding Out at It's Finest

In economics, "crowding out" is any reduction in private consumption or investment that occurs because of an increase in government spending. The only way governments can spend more is to tax more or borrow more.

CHART OF THE DAY: Banks Are Lending Money Like Crazy To Single Borrower

That would be Uncle Sam.

The latest data, which just came out yesterday, confirms that while bank lending remains subdued, purchases of government securities continue to soar.

Why the thirst for government securities? Well, government has a big thirst for money, and in this environment, it's nice to put money with an entity that you're sure can pay you back.

Seriously, why would you bother lending to an actual job-creating small business.