We believe it is critical for Congress to consider and address the important public policy implications raised by the ILC exception, particularly in light of the dramatic recent growth and potential future expansion of banks operating under this special exception.
Not a few firms have been considering shifting investment to emerging markets, where expansion in demand is expected. However, since the level of business fixed investment has already declined considerably, if exports and production continue to increase, the capacity utilization rate will increase and business fixed investment will bottom out and start to increase. Housing investment has recently been showing signs of bottoming out.