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From the St. Louis Federal Reserve: "Lending growth slowed to zero during the 1990-91 and 2001 recessions but recovered after a few quarters. In contrast, durin
by dctoedt 6y ago
From the St. Louis Federal Reserve: "Lending growth slowed to zero during the 1990-91 and 2001 recessions but recovered after a few quarters. In contrast, during the Great Recession (2007-09), loan growth became strongly negative and remained so for almost four years."
https://research.stlouisfed.org/publications/economic-synopses/2016/02/05/bank-lending-during-recessions https://research.stlouisfed.org/publications/economic-synops...
- missedthecue 6y agoYes, I understand that the growth of new loan originations experiences vicissitudes based on general economic conditions. That's not my point. My point is that loan growth slowing is not the rich hoarding all the money. They don't hoard. Hoarding is not only unprofitable, it costs money.