Yes, the credit crunch is still alive and well. The improvements in yesterday’s loan officers’ survey were all “second derivative” improvements: Credit standards aren’t loosening yet; they’re just getting tighter at a slower rate. But you need to walk before you can run.
Asha Bangalore at Northern Trust charts the details. We’ve summarized her thoughts below.
Fewer banks tightening loan standards for companies:
Cost of these loans also getting cheaper:
Unfortunately, no one wants to borrow money right now:
Especially in commercial real estate. Demand for loans continues to tank.
Rich people are starting to want to borrow money to buy houses again:
And banks aren’t clamping down on mortgage terms as rapidly as they were a few months ago:
Conditions are thawing for consumer credit, too–except for credit cards:
And, somewhat frighteningly, unlike companies, consumers are already losing their aversion to borrowing:
You can download Asha’s report here >