Time to arrest and prosecute
– For a while, rumor had it that banks weren’t lending, and that this was the reason the recovery has been so crummy and that businesses weren’t expanding and that jobs weren’t being created fast enough. There was no demand for loans, and banks were too tight with their lending standards. Or so the story went.
Turns out, banks have been lending. Not only that. They’ve been lending more than ever before. They have been lending even more than during the last credit bubble, when too many easy loans were made helter-skelter by loosey-goosey loan officers while the Fed’s spigot was wide open, which helped blow up the financial system.
Note the beautiful big-fat bank credit bubble that emerged in 2002, picked up speed as it went, and took off in earnest in 2007, when the chart begins. And note how it soared exponentially in 2008. At the…
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