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Are banks pulling back on lending or are their customers pulling back on applying for credit? I think that's an important distinction, and I really believe it's
by oofta-boofta 3y ago
Are banks pulling back on lending or are their customers pulling back on applying for credit? I think that's an important distinction, and I really believe it's the latter.
Also note that US housing inventory is incredibly low at the moment: https://fred.stlouisfed.org/series/ACTLISCOUUS https://fred.stlouisfed.org/series/ACTLISCOUUS
This was the whole point of raising rates, why are people freaking out?
- neximo64 3y agoThe function of raising rates is to destroy money to reduce money supply - so there is less money to cause inflation, and that means reducing both credit and deposits via deleveraging