Bank Credit and Business Loan

Internet is a wonderful place. It is full of all sorts of stuff.


It is, of course, up to the user (surfer) to sift through the stuff and pick what is of value.

One of the interesting phenomenon recent years has been the ability of individuals to express their minds freely, expansively and somewhat anonymously


This has led to all sorts of overnight experts in all sorts of fields


The world of finance has not been immune to this and all sorts of stuff is written and commented in the cyberspace


It is still up to the reader to sift through the stuff


I came across some comment by some pseudo-named cyber-entity saying that private credit has been contracting


The cyber-entity did not give any reference to the source of his/her data and did not bother to tell us over what time frame he/she had been studying private credit


Without reference to data and without being explicit about the time frame of study, any such claim can hardly be of any use for making market decisions


So, I thought I would look up credit figures for myself using the data published by the good guys of US Federal Reserve

You can clearly see that, since late 2009, both bank credit and business loan have been in an uptrend.




In all fairness, the person who made the claim about contracting credit may have been looking at data for the past few months and not past few years, he/she might have been looking at credit data of some other country, like Greece, but, since he did not give anything to substantiate his claim, I end with the point that without reference to the actual data and without being explicit about the time frame of the study, any claim made is, at best useless, and, at worst misleading.




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