Banks' boost in purchases of longer-term U.S. debt while clamping down on lending reminds some...

|By:, SA News Editor

Banks' boost in purchases of longer-term U.S. debt while clamping down on lending reminds some of Japan in the 1990s. "Banks buy more and more government bonds, it will be very difficult for the Fed to raise interest rates because they will lead to massive losses in the banks and cause them trouble all over again."