[Wyatt's Torch]

Lack of long term demand for lending is driven primarily by uncertainty. See the article I just posted from MAPI that describes it. Very timely.

[palmer]

From the article you posted: "A high level of uncertainty causes consumers and firms to postpone expensive purchases for goods with long lives. Economic theory describes the concept in terms of the option value of waiting. A firm or person may amass cash rather than finance an investment if uncertainty makes the investment's rate of return difficult to calculate."

IOW, it's not the lack of demand for dollars for long term investment, but the lack of supply. Also it is not just the purchases of goods by firms, but also purchases of labor.