The demand for credit is there, but banks are being stingy. Raising the interest rate would increase the bank's benefit/risk ratio and attract foreign investors to finance our ever increasing national debt.

After all, what good are low interest rates if the banks aren't lending?

I've said before, our economy has been geared for the wealthy, or unfortunately, the people that financed their way to a wealthy lifestyle. The cost of the average desirable automobile is easily over 1/2 the national average annual income. Most 'experts' recommend 20-30% of annual income.
The only houses being built recently are in the $350,000 to $700,000 range. I've said for 15 years that "we are going to run out of people that can afford these houses."

Our economy will have to retool to support a level of consumption like that of the early 80's. Our consumption up until this year was a gross distortion of the underpinnings on which it stood. It obviously will be a difficult transition in which you could see 'McMansions' razed for more affordable track housing- a reversal of tearing down the two $1,000,000 houses to build the $10,000,000 house.

You heard it here first.

(open to criticism)