Reply #2: There are a few potential reasons for this

[Idealism]

1. There is nobody to lend to (compared to 8 months ago). Consumer spending has dropped off a cliff and it isn't coming back anytime soon, so people are asking to be lent to less. Jobs are being slashed everywhere, so payroll lending isn't as demanding as it once was to banks.

2. The banks are in such a precarious position, holding hundreds of billions in assets that have literally no discernable value, that they are hoarding cash to stave off potential runs and bankruptcy.

Another thing to point out: There is no way the $160 billion figure is legit, lets take the tinfoil hats off people