Deutsche Bank: There's A Massive Credit Spigot About To Superpower The U.S. Economy

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The U.S. is on the brink of a massive credit explosion, brought on by quantitative easing and a willingness for banks to lend, according to Deutsche Bank.This bullish call on the U.S. consumer and broader U.S. economy stems from a series of charts that point to new spending for those in the U.S. and a new willingness for banks to lend.

This goes in opposition to the data released by the New York Fed this week that suggested consumer demand for credit was collapsing because individuals were choosing to deleverage, rather than spend.

But Deutsche Bank begs to differ. The say, “The Credit Crunch Is Over” and now the demand for loans is about to kick off.

Banks are ready to dole out the cash, and consumers are starting to spend again.

Commercial banks are ready to pump money back into business.

And things are about to get real exciting over the next year.

And if businesses are rebuilding inventories, then industry must be taking on new debt.

Consumers are going to get new credit too.

And those lending standards are dipping too.

And Deutsche Bank thinks households are going to start spending again, but maybe not like the old days.

Vehicle sales have already picked up, a sign that other spending is going to get in gear too.

With all this credit sloshing around, and consumers primed to spend, inflation could surge.

So keep an eye out for that.

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