The So-Called Credit Crunch, Again Some More

It’s really hard to kill this meme. Note the label on this graph from today’s Free Exchange post:

Now change that heading to read “Business borrowing.” Sort of gives a different impression, right?

The idea that the problem’s on the supply side is pervasive, and false or at least wildly overblown. Lending rates are at historic lows. But the credit-crunch storyline gives very effective aid and cover to the financial industry in justifying its inordinate size and power.

I tried to drive a stake through the heart of this vampire squid back when we saw that first dive, back in 2009, and the situation is much the same today. (See also Related Posts at the bottom of that post.)

The Sky Is Falling! Business Lending Down 1.2 Percent!

Cross-posted at Angry Bear.

 


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3 responses to “The So-Called Credit Crunch, Again Some More”

  1. Greg Avatar

    “The idea that the problem’s on the supply side is pervasive, and false or at least wildly overblown. Lending rates are at historic lows. But the credit-crunch storyline gives very effective aid and cover to the financial industry in justifying its inordinate size and power.”

    Right. Its like they think the banks sit there saying ” Oh golly, if only we had some money to lend to those businesses……. err.. job creators…. then we could get this economy going again.!!! Hey Fed Reserve, you got any money I can lend out? The people are too busy buying booze and going to concerts and refuse to save. If only they stopped spending so much and gave us some of their money to lend we’d be in fat city…. whats a banker to do?”

  2. […] The idea that the problem’s on the supply side is pervasive, and false or at least wildly overblown. Lending rates are at historic lows. But the credit-crunch storyline gives very effective aid and cover to the financial industry in justifying its inordinate size and power.  [Asymtosis] […]

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