Don’t Cut Our Access to Credit

Published July 10, 2010

Paul Peter Jesep’s July 4 Perspective article, “Shame on the credit lenders,” ignores the reality of America’s financial system in favor of an emotional call to arms against banks.

On balance, banks do a lot more good than harm. To provide credit for any number of private goals, banks need to be able to charge rates to cover the risk of default and retain profits to make additional loans. The credit banks provide the lifeblood of a strong economy, making the dreams and ambitions of big companies and small entrepreneurs possible.

While government must police against fraud, it shouldn’t hinder the access to credit that makes our economy work.

Matthew Glans
The writer is Midwest director of the Center on Finance, Insurance and Real Estate at The Heartland Institute.