Category: credit crunch

Bank Lending Plunges by Largest Measure on Record as Credit Crunch Alarm Rings Louder

April 10, 2023
bank lendingBusiness & Marketscredit cruncheconomyinflationrecessionUSUS News
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Lending by U.S. banks has plunged by the biggest amount on record in the final two weeks of March, according to the latest data from the Federal Reserve, prompting analysts to renew warnings of recession and stagflation. The Fed data show that commercial bank lending in the United States fell by $105 billion in the two…

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‘Recession Probabilities Are Going up at This Point’: Larry Summers

April 8, 2023
banking crisisBusiness & Marketscredit cruncheconomic recessioneconomyLarry SummersPolicies & ImpactsrecessionUS
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Former Treasury Secretary Lawrence Summers believes the probability of the United States entering a recession has spiked, pointing to tightening credit conditions. “Recession probabilities are going up at this point,” Summers said in an interview with Bloomberg. The U.S. economy averaged 345,000 monthly job additions in the first quarter of 2023 while the unemployment rate…

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A Credit Crunch Is Inevitable

April 4, 2023
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Commentary Federal Reserve data shows $174.5 billion of deposits left the banking system in the week after the Silicon Valley Bank collapse. Most of the money went to money-market funds, as Bloomberg shows that assets in this class rose by $121 billion in the same period. The data shows the challenges of the banking system…

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Systemic Credit Crunch Replaces Inflation as Fund Managers’ Top Worry

March 22, 2023
Business & Marketscentral bank policyCompaniescredit cruncheconomic policieseconomyinflationInvestmentinvestorsMarketsPolicies & ImpactsrecessionUS
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A systemic credit crunch has overtaken inflation as fund managers’ top fear this month as the biggest risk to the markets, according to a new poll. At least 31 percent of respondents labeled a systemic credit crisis as the most significant threat to markets, followed by 25 percent choosing stubbornly high inflation as the largest…

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