Robert Higgs has written an interesting and enlightening article on his blog entitled, "Credit is Flowing, Sky Is Not Falling, Don't Panic."
Bush, Bernanke, and Paulson tell us that if we don't pass the $700 billion bailout plan that bank credit will cease, and the economy will collaspe. Let's look at the facts of bank credit and see if perception and reality are one in the same. In the above article, click-on the URLs for each of the following categories, which will illustrate the growth of credit at all commercial banks:
1. Commercial and Industrial Loans
2. Consumer Loans
3. Real Estate Loans
4. Bank Credit.
By the way, Congress just passed a bill that gives the U.S. auto industry $25 billion without any questions raised from the financial media. Wow! Where is all this money going to come from? I guess we better get ready for hyperinflation, higher taxes, higher interest rates, and a lower standard of living.
1 comment:
I thought the comments about easy credit and malinvestments were very interesting, given its potential impact on the economy.
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