To embed this post, copy the code below and paste into your website or blog.
Enter you email address and zip code to set up customized email alerts.
Image: Northern Trust
What's more, in the past three weeks, the total amount of loans and leases made by banks (as opposed to securities) has started to grow.
This is important, because bank credit is closely tied to the performance of the economy: Generally, when bank credit expands, the economy grows, and when bank credit shrinks, the economy stalls.
So the turnaround in bank credit could bode well for the economy at large, in 2011 and beyond.
Northern Trust economists Asha Bangalore and Paul Kasriel have been on top of this trend since it began in July (we previously wrote about it here). Yesterday, Asha published an update noting the recent growth of not just the amount securities banks are holding (Treasuries, et al), but loans and leases--the life-blood of the economy.
To embed this post, copy the code below and paste into your website or blog.
• Senate Shockingly Passes Bill That Could Bail The Banks Out Of Foreclosure-Gate
• White House Already Granting Exemptions To Obamacare All Over The Place
• You Won't Believe It, But Banks Are Actually Starting To Lend Again
• El-Erian: The Big Story Is That Every Government Policy Measure Fails
• Goldman: Why The Upcoming Employment Data Will Scare You
Reflation didn't work that time. Why do people think it will work now?
The Japan of old sounds a lot like China today.
No one's even thinking about deflation anymore.
Both parties are trying to bury our children and grandchildren deeper in debt.
All the trend lines are bad.
* Copyright © 2010 Business Insider, Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. | Disclaimer
Redesign by Intersect, Inc. | Powered by MongoDB | Hosted by Datapipe | Web analytics by Empirical Path
Read Full Article »