It's The Worst-Ever Credit Crunch On Main Street

That’s how David Goldman describes the current situation, and he’s right.

These two charts from the St. Louis Fed tell the story. The first one is year-over-year change in commercial and industrial loans. It’s still getting worse. The second one shows bank ownership of government securities — i.e. the risk-free assets that banks are buying with their money, instead of lending it into the private sector.



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