Doomsday Device

Disappearing Credit
All across the banking world – from commercial loans to leases and real estate – credit is collapsing. Ambrose Evans-Pritchard writing for British newspaper The Telegraph:
Credit strategists are increasingly disturbed by a sudden and rare contraction of U. S. bank lending, fearing a synchronized slowdown in the U. S. and China this year that could catch euphoric markets badly off guard. Data from the U. S. Federal Reserve shows that the $2 trillion market for commercial and industrial loans peaked in December.
The sector has weakened abruptly as lenders tighten credit, especially for non-residential property. Over the last three months it has dropped at a rate of 5.4% on annual basis, a pace of decline not seen since December 2008.

This post was published at Acting-Man on April 7, 2017.