An excellent opinion piece at Forbes.com dovetails nicely with my most recent piece about bear and bull markets in credit.
From Forbes.com: >Bank Loans Have Not Dried Up
Contrary to many comments, consumer and industrial loans actually increased in the latest week. Troubled giant banks have cut back on lending, but smaller banks have picked up the slack. Consumer and real estate loans dipped insignificantly through Sept. 17, remaining much higher than they were a year earlier.
And this one:
Economic journalists seem oddly fascinated with the last column of the table--interbank loans from one to another (aside from fed funds). "Banks won't even lend to each other," said a TV reporter, "so how can we expect them to loan to business or consumers?" But interbank loans are obviously tiny, and banks rightly regard lending to other banks more risky than lending to Main Street. There is no reason to expect the minuscule flow of interbank loans to determine consumer and business loans. That little tail can't wag the big dog.
It's an excellent piece that should be read.
Something Even I Need To Be Reminded Of: It's Not A Bear Market For Everyone