Posted on 05/16/2016 12:31:17 PM PDT by ChicagoConservative27
The warning signs of a credit slowdown are beginning to appear.
Late Friday, the Federal Reserve's weekly H.8 report showed that growth in lending for commercial and industrial (C&I) loans has significantly cooled off in recent weeks.
According to Bespoke Investment Group, the annualized quarter-over-quarter growth rate of C&I loans fell to 15.17% based on Friday's data. Just two weeks ago this was 19.34%.
(Excerpt) Read more at businessinsider.com ...
The headline is somewhat misleading. Borrowing has declined, it hasn’t been cut off.
So there are 15% more loans than the previous quarter?
A 15% increase is bad?
Vy misleading headline.
The decline is most likely due to a slackening of demand. It's certainly not due to a lack of capital supply. If that were the case, interest rates would rise.
My theory is that the fed will shut off the QE as soon as Trump takes office and the economy will hit a wall. This does two things. It allows the establishment an escape hatch from the correction that has to come.
And it lets them punish the electorate for going outside the normal party structure.
implicit is the assumption that the rate of borrowing is constant
Why borrow money, run business, when Kenyan is crippling everyone? Easier to go on welfare, let the 1% feed US!
I think Trump knows this.
He has already dropped hints about firing Janet Yellen.
bump
Yup! Works out very well at first, but as Lady Maggie put it, you eventually run out of other people's money...
The Commercial real estate market reached overheat and sales peaked months ago. This is a lagging indicator.
It’s not a plus, but it’s also not a canary in the coal mine.
It’s just another brick in the huge wall of our current depression which will last until 2022-2025.
Winner
I’m dismayed by the number of loony comments here. I thought Freepers would be better informed.
OK, so there's no doubt about the fact that this econ is an underachiever --especially w/ employment. The drag (imho) is not (like BI's trying to tell us) credit. I blame the left's war on commerce.
It’s not a misleading headline if folks read the article all the way to Figure 7 and take a look at that longer term trend.
The problem is uncertainty, regarding future employment and future expenses at the individual level. A growing economy with obvious job prospects greatly reduces employment uncertainty. Future expenses are a little more difficult, but it’s not as if we don’t know where the increased expense is occurring.
It’s still not being “cut off,” it’s declining.
You’re right; why risk your credit and invest the time just to have some unassimilated minority say “you didn’t build that”...
YUP
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.