You are either ignoring banks or the fact that banks simply create money when they extend a loan. Disregarding that particular issue: Sure, banks are always lo

You are either ignoring banks or the fact that banks simply create money when they extend a loan. Disregarding that particular issue: Sure, banks are always looking for people to loan money to, because that's how they make a profit. But what if they simply don't find many people they can give loans to? That is still the problem, and that is an important reason why direct spending has a higher multiplier than tax cuts. People are still repairing their balance sheets, which means there are simply fewer people who are creditworthy and willing to borrow money.