Still not happening…
(But the rate at which lending is decreasing has slowed. So we’ve got that going for us.)
Speaking about bank lending, the broken credit machine is the challenge of the year. Bank lending has declined for six straight quarters. The financial accommodation from the Fed is parked as excess reserves of the banking system and is not being converted to loans. The Chairman’s thoughts [today] about the severe credit contraction should be most important topic of the testimony in addition to deflation.
Photo: Northern Trust