Flargan: FarkIlk01: Because money creation in our economy is dependent up on debt creation. If the banks aren't willing to loan then the economy will stagnate or get worse. The banks aren't the problem so much as people and business aren't in the mood to take on debt, or can't handle any more debt.

Its called hitting the debt wall and it sounds exactly like what it is.

It's complicated by the fact that we don't make much of anything anymore, except food. Our workforce is mostly occupied either rendering services or selling stuff that is made in other countries - and our "captains of industry" have mostly been replaced by speculators who "create" their wealth by shuffling other people's money around.
If we don't do something about that, there's not much point in trying to fix anything else.
I remember an editorial cartoon I saw in the early nineties. It's a classroom scene, and,on a blackboard with "Economics 101" at the top, the professor has written "Production", He is saying to the class "Today, we are going to talk about making things. Actual. Things."
In the back of the class, one young man is angrily whispering to a classmate "Things? I don't want to make "things". I want to make money!"
And the other responds "I know how we can make some money! Let's sue the school!"
Rather prophetic, in retrospect.