From Marginal Revolution:
Back in February I pointed out that despite all the talk of a credit crunch commercial and industrial loans were at an all-time high and increasing. At the time, Paul Krugman and others responded that this was just temporary as firms drew on previously existing lines of credit. Well here we are in September and bank credit continues to look very robust. As Robert Higgs points out consumer loans are up, commercial and industrial loans are up, even real estate loans are up. Overall, total bank credit is up with just a slight sign of leveling off in recent weeks. So where is the credit crunch?
Srsly, though... if this is the situation, the bailout really will be only for Wall Street and not for Main Street. And if that's the case, then Paulson can #suckit.
Hey, Kady. My husband is a Sales Manager at a huge Toyota dealership. He is having huge problems getting people approved for loans that were no problem a week ago. For what it's worth, we are seeing a trend. Know that we don't want this to be the situation, as tha's all we have to live on. If he can't get cars sold, we're going hungry. However, I still don't understand why this is happening. I am busily reading, but still confused. I know repealing the 1031 is not the answer, but what is? When are they going to tell us what they are trying to sign, now?
Posted by: Amy P in FL | September 25, 2008 at 02:44 PM