Banks May Not Be Lending, But They Are Buying Treasurys [CNBC]

From CNBC.com

Though banks continue to be hesitant to lend to consumers, they have stepped into the market for Treasurys that help finance the government's burgeoning debt.

There's speculation that there may be a gentleman's agreement between the Fed and the banks to keep rates low. As one economist was quoted:

I'm sure it's at the behest of (Fed Chairman) Ben Bernanke-we're going to keep rates low but you must facilitate the Treasury auctions going off smoothly.

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