Have You Heard The One About Banks Not Lending?

There’s this joke going around the mainstream media, including the lying liberal media ( as opposed to the lying rabid right wing conservative business media)  that banks aren’t lending.

Ha ha. Pretty funny.

It’s total bullshit. Over the past year and a half, banks have been lending aggressively. US commercial banks have grown their loan portfolios by $600 billion or 9.2% since mid 2011.

Bank Loans - Source The Wall Street Examiner Professional Edition Fed Report

Bank Loans – Source The Wall Street Examiner Professional Edition Fed Report

That doesn’t count the $356 billion in Agency MBS they’ve added to their portfolios since mid 2009.

Bank Holdings Of Agency MBS- Click To Enlarge

Bank Holdings Of Agency MBS- Click To Enlarge

The banks are not only lending aggressively, they are supplementing the Fed in enabling the creation of mortgages via Fannie and Freddie.

These are not markets or an economy that needs any additional Fed stimulus. If anything, they will overheat faster than anyone expects.


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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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