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Let's be honest: It wasn't just the banks who messed up. There were a lot of people who tried to buy assets they couldn't afford. That's a reality.

The banks are not lending, at least from what I see. They were so wild and reckless back in the good times that they got burned terribly.

Banks were once places to hold money and were very careful in lending to finance families as they built a future - bought homes, bought cars, took out student loans.

The Fed contributed to the financial crisis, keeping interest rates too low for too long. I give them credit for responding and stabilizing the economy and the financial sector during the crisis. But then they tried to do too much with quantitative easing that went on forever, just dramatically exploding their balance sheets.

Even if the government spends itself into bankruptcy and the economy still does not recover, Keynesians can always say that it would have worked if only the government had spent more.

A short squeeze could happen with the U.S. dollar if lenders suddenly forced debtors to pay in cash.

There are limits to monetary policy.

Before the arrival of the Credit Union, people who were from the poor background or a working class background couldn't borrow from banks.

The real problem is deflation. That is the opposite of inflation but equally serious to the borrower.