Wednesday, June 20, 2007

Liquidity Slowing? / Paul Kasriel

i think we can eliminate the questionsmark.......

Meiner Meinung nach kann man das Fragezeichen bereits jetzt weglassen.....
It sure is with regard to how much U.S commercial banks are providing of late. Adjusted by the CPI, the year-over-year change in U.S. total bank credit (loans and investments) hit a recent peak of about 9% in October 2006. As of May, that year-over-change had slowed to about 4.8% (see Chart). As mortgage defaults continue to rise and regulators issue new more restrictive mortgage lending "guidelines," bank credit growth is likely to slow still more.

And goodness knows what will happen if a few of the private equity loan deals sour.


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