If those banks sit on the money and do nothing but they will...

If those banks sit on the money and do nothing but they will have not income and still have to pay the Fed for the privilege.

Banks hsould not loan out funds to just anyone. they should be prudent. If prudence means they are careful who they lend to then that what we want - we don't want a repeat of this BS again in the future.

What you are suggesting is effectively a return to the old ways - lend, lend, lend, at least the markets will recover quickly, LOL...