Bailout Fact Check: There is no credit crunch
- Saddam had weapons of mass destruction
- I’m a Republican and I vote for small government
- Credit have markets “seized up”
What does that mean – “seized up”?
It sounds like political fear-speak to me.
So I checked around. I called my business banker and he said they were still happy to lend me $250,000 with NO FINANCIALS subject to decent personal credit and 3 years in business.
Robert Higgs’ blogged thusly on the Independent. According to our friends at the Fed Bus credit , consumer credit and total bank credit are all at all time highs.
Here’s some charts based on Higgs’ blog comparing credit to GDP.
Business Loans have been increasing rapidly compared to GDP.
How about Consumer Loans? They have increased rapidly too.
So where is the crunch? Let’s look at All Bank Credit.
Hmmm seems like something flattened out. Could it be Real Estate?
It shouldn’t surprise anyone that real estate loans have flattened out. Notice I said flattened out. They are still at historic highs as compared to GDP. Could it be that the the Fed and Congress can’t continue to inflate the Real Estate bubble they created?
Is that a bad thing?