The bailout was supposed to alleviate a dramatic credit crunch, one that could possibly destroy the entire world economy- at least if you believed Paulson, Bush, et al. But stop and think for a moment... do you know anyone that wanted to get a loan and could not, due to the "crisis"? Anyone? I haven't heard a single story of someone that simply could not get financing. There are plenty of stories of economic hard times, but no specific lending problems that I've seen. So why does the data show that banks are lending more than ever???? Oh right, because the whole thing was a massive fraud to begin with. I keep forgetting.
The latest government numbers, through mid-October, show bank commercial and industrial loans up, bank commercial real estate loans rising and interbank loans climbing. Indeed, from September 2007 to mid-October of this year, the numbers in all three categories have climbed consistently.
It's a puzzle that's getting little attention, even as hundreds of billions of taxpayer dollars are devoted to fixing a problem that seems belied by government figures.
"Their own data seems to contradict their position," said V.V. Chari. "It would be valuable for them to explain what they're talking about."
h/t to Open Left