[lbo-talk] more on the nonexistent credit crunch

[C. G. Estabrook]

[From the other shore.  --CGE]

	The Financial Crisis and Business Loans: The "Credit Crunch" That Isn't

	Written by Richard M. Ebeling

	Monday, 05 January 2009 00:00

For months, now, the news has been filled with reports of a huge credit crunch 
crushing the ability to borrow in the United States economy. The impression of a 
financial sector that has ground to a halt, however, is not born out by the 
facts. To the contrary, lending and borrowing have continued to grow in America, 
albeit at a lower rate of growth all through 2008.

Banks have used a large portion of the Federal Reserve’s expansion of the 
monetary base (up 70 percent since July) to shore up balance sheets. But they 
have not “rebalanced” their balance sheets through any noticeable decrease in 
commercial and industrial lending...

http://www.aier.org/research/commentaries/971-the-financial-crisis-and-business-loans-the-qcredit-crunchq-that-isnt 

Doug Henwood wrote:
> Financial Times - January 5, 2008
> 
> Credit squeeze hits bigger companies hardest
> By Richard Milne
> ...