This Reuters article summarizes a report that should leave most taxpayers scratching their heads.
In short, according to the report, everything we've been told by politicians and the media about the current "credit crunch" is a lie. Some highlights:
Regarding U.S. business access to credit, the report says:
*Overall U.S. bank lending is at its highest level ever and has grown during
the current financial crisies.
*U.S. commercial bank lending is at record highs and growing particularly
fast since May 2007.
The report argues similarly on consumer credit, which it said was at a record high in September, the latest date for
publicly available data.
The article also provides this commentary:
As a result, governments are pumping masses of public money into the economy
across the world because of the difficulties of a few big, vocal banks and
industries such as car manufacturing, which would be in difficulty anyway,
according to the report published by Celent, a financial services
"It's just stabbing in the dark with trillions of dollars," Octavio Marenzi,
report author and head of Celent, told Reuters in a telephone interview where he
questioned the depth of the analysis that preceded numerous fiscal stimulus
Looks like another case of the government creating a "crisis" so as to grease the skids for another massive expenditure of tax dollars.
I'm so glad we trust the government to "fix" the economy.