Bank Lending Loosening Up

Behind the scenes, the biggest danger to the economy is an extended absence of credit.

Credit is loosening, however. The LIBOR rates have been falling, which is a good measure of bank comfort level. LIBOR is now the lowest it has been since 2004, which means that banks are now extremely comfortable lending each other money overnight.

There’s also a sorta upbeat article in the LVRJ, about banks that want to lend but can’t find borrowers.

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