Posted on 09/16/2009 7:04:44 AM PDT by TigerLikesRooster
Bailout Recipient Banks Lending Drops For Sixth Consecutive Month
Submitted by Tyler Durden on 09/15/2009 19:38 -0500
It was just yesterday that Tim Geithner was lying that banks are constantly increasing lending to consumers. Well, yet another lie refuted. Banks, and not just any banks, but those receiving government bail outs and subsidies, continued constricting lending in July, with total average loan balance outstanding declining by $54 billion from $4,295 billion to $4,241 billion, a 1.3% decline, following a 1.1% decline in June.
As for the reason why loan originations in July declined a whopping 10% after posting a 12.7% increase in June, the government simply noted that this was due to "decreased demand from borrowers."
And so the circular lie continues: the government claims lending is increasing, when in fact, it is not, and when confronted with this fact, the government claims this is due to lack of interest. Furthermore, with retail sales reportedly higher, the consumer is allegedly spending more, with average wages declining, meaning consumer need to borrow to finance purchases, or else eat into their meager savings. Yet all this is occurring on the foreground of a rapidly increasing savings rate. So consumers are not borrowing, they are saving more, yet somehow sales are increasing: the lie is so circular that if there was a Kudlowbot, its head would explode trying to "spin" this null argument.
(Excerpt) Read more at zerohedge.com ...
Ping!
....why am I not surprised?...everybody is holding on to money now...including our household.
But things are getting better. I know that because the Government and the Fed have said so.
What you reward you get more of...
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