Tuesday, January 06, 2009

Dramatic Loan Growth

I posted a couple more charts this morning showing the dramatic loan growth that is taking place. One part of the business loan growth involves corporate bond redemptions. If a company can borrow at prime + to save 20+ then why not? As the charts show, corporate loan demand does not tend to drop off after recessions until after there has been a massive rally in corporate bonds.

It is surprising to see such strength in consumer and real estate lending. The "news story" does not fit the data.

The reason the congress is in such a rush to pass an economic stimulus package is to be able to take credit for the economic recovery that is on the way.

By the way, welcome to Bob Dodd and Al Miles to Facebook. I suspect Al, in particular, will post a lot of "stuff".