There is no reason to be alarmed about the drop in lending amongst Americas largest banks. These critics who are stoking the fire trying to say there is a problem with Americas big banks not lending quite possibly may cause serious problems in the banking industry. If they dont cut it out they may cause Washington to take action which may ultimately seriously hurt banks. These critics like to say amongst the big banks receiving TARP money lending dropped around 4.5 % in February from January of this year or for February of this years lending figures dropped around twenty-five percent compared with October of last year. These critics continually ignore context. Currently America is in the worst recession in the last seventy five years if one considers the comprehensive harm to our country from this recession. All these negative lending statistics are to be expected from this recession. U.S. businesses have laid off four million people in the last sixteen months, businesses are unsure about when the economic recovery will be coming and how strong it will be, America is a consumer based economy and Americas consumer are unsure about Americas economic recovery. U.S. banks are not receiving the demand for burrowing that existed prior to the recession. When banks receive lending requests they are naturally going to scrutinize these requests more carefully and be more cautious in their lending because of the recession. A recent study found that sixty percent of the heads of businesses expect revenue to be down throughout the balance of this year and it was a fairly large study, now if heads of businesses expect low earning this year dont you think their bankers should be considering this reality in deciding to lend credit to such businesses. This whole criticism of banks and their curtailment in lending is really laughable when it comes to certain areas of lending like commercial lending involving building and construction. Malls and Retail buildings have seen dramatic increases in retailers going bankrupt or in financial rough times, owners of office building arent getting expected lease rates, condominium developers are having a nightmare of a time selling condominiums. Bank management would be negligent if they werent abandoning business as usual behavior and making a great effort to insure they dont make troubled loans. Critics really have to stop stoking members of Congress and the executive branch of government to come down hard on banks to lend more. This activity quite possibly may cause government actions which will cause harm in banks and many banks are still somewhat in a fragile financial state, it may push some banks into a track where they fail directly or indirectly (they have to be sold). All these critics that want to sound the alarm on bank lending are forgetting some critical lessons that every American should be hoping with all their heart Americas leaders have learned. Deep recessions on an economy take a long-time to recover from, it takes a long-time for consumer and business spending to come back to normal as well as a long time for credit markets to return to normal. Therefore, America leaders should be damn well sure that the regulation of Americas financial industries has no significant flaws and that the American governments fiscal and monetary policies are such that they arent going to trigger any events that have a cascading effect that drive the U.S. economy into such an undesirable state of being in a deep recession. The observed drop in U.S. bank lending is simply a situation analogous to when a person gets seriously ill it takes a long-time for that person to recover, the ill person can belly ache as long and hard as he or she wants about the slow pace of recovery it doesnt matter the ill person still has to go through the natural healing process.