Comments on: Banks Cutting Back on Business Lending

By: Dillin

Dillin — Tue, 29 Jul 2008 18:09:00 +0000

It’s going to get worse before it gets better. As you know, 70% of our economy is based on consumer spending, that is you and I buying stuff from each other. Now, that the home ATM machine is closed and consumers are tightening their belts and behaving more cautiously it’s likely the economic contraction will be severe. Levy Institute has an interesting report on the effects of the closed Home ATM Machine you can print and read
http://www.ushousingmeltdown.org/housing-research.asp
The problems at Mervyns Dept store are a sign of challenging times ahead.

By: Alfred

Alfred — Mon, 28 Jul 2008 21:37:00 +0000

I suppose most of the 3 pc decline comes from the commercial paper market and here it is again the ABS-CP market that is mostly impacted. Nothing new and surprising there. According to data from the Federal Reserve Bank of St. Louis Commercial and Industrial loans have actually increased from about $150 billion per month to $ 250 billion per month in the second half of 2007. Businesses obviously have tapped their credit lines when they abandoned short terem funding sources. Banks are not cutting back on business lending yet, as long as they are able to successfully recapitalize.

By: Doc Holiday

Doc Holiday — Mon, 28 Jul 2008 07:20:00 +0000

Retail trade group predicts many store closures
http://www.publicradio.org/colum…redicts- ma.html

Susan Valot: Levitz, Linens ‘n Things, Shoe Pavilion… Those are just a few of the store chains that have declared bankruptcy over the past few months. Mervyn’s reportedly may be next in line. And other chains, like Home Depot, JoAnn’s, Gap, and Old Navy, have opted to close stores in order to tighten their purse straps.

The International Council of Shopping Centers predicts 144,000 stores will close nationwide before the end of this year. That’s up 7 percent from last year. It’s the largest year-to-year jump since the group started keeping records of such things 14 years ago. But the council points out the overall number is still fewer than the average number of closings between 1993 and 2001… a sign, it says, that the retail industry is better prepared to weather economic storms.

As of April, there were about 217 U.S. outlet centers totaling 57 million square feet of space, where about 305 outlet chains operate 11,546 stores, according to Value Retail News, published by the International Council of Shopping Centers.

By: Flanders

Flanders — Mon, 28 Jul 2008 07:08:00 +0000

Access to capital and credit is essential to growth IN A CREDIT ADDICTED ECONOMY. If that access is restrained or blocked, the economic system takes a hit.

By: ndk

ndk — Mon, 28 Jul 2008 06:23:00 +0000

The Federal Reserve has been lowering interest rates aggressively to make money flow more loosely and to spur economic activity.

Ah, I vaguely remember the days when the Fed changed interest rates. Sometimes they would move up, and sometimes they would move down. We'd play silly games with a "bias". It was good, clean fun.

Then the liquidity trap hit. Now we get "liquidity injections," bizarre regulations and insane legislation, with discount windows for all.

Push a little harder on that string, boys! It'll move any... moment... now!