Paulson's Capital Cram: Oops, banks not using it for lending...

Looks like the administration has woken up to the fact that just because you give banks more money, doesn't mean they'll lend. AP has an article where the White House is admonishing (admonishing!) banks to lend now that they've taken the money. Why isn't anyone talking about the fact that banks don't have anyone to lend to? What part of: "tightening credit standards" are people not understanding?