The banks have to start lending again, but they're too encumbered with bad debt to take on more risk. Consumers need to start borrowing again, but the current debt service they shoulder won't allow the acceptance of more risk. The government wants to relieve the banks of their bad assets but there is no real way to determine the value of the assets to compensate them. If the "G" paid some estimation of today's fair market value, the banks would quickly find themselves insolvent. There has been little attempt to restructure loans or reevaluate terms on the commercial and consumer side. The current levels of debt service are completely debilitating and progress can't begin without some relief. Therefore, an active campaign to extend the conditions of loans at all levels is essential.
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