So… the global economy has been tanking in no small measure because certain states provided perverse incentives and pushed lenders to offer vast quantities of money to people who had no realistic probability of ever paying it back… and the solution to get us out of this whole mess is to twist banks arms into making loans they would rather not make.
The Lib Dem members of the Coalition favour a more interventionist approach to banking. Having been bailed out by the taxpayer, they argue, the banks have an obligation to lend. The Tories regard it as contradictory to try to control banks while encouraging them to build up their balance sheets.
No shit, Sherlock. The lunatics have taken over the asylum.