Comments for Small Business Loans Are Down in a Recession: Why Should We Be Surprised? at http://www.cepr.net , comment 1 to 6 out of 6 comments http://www.cepr.net Wed, 19 Jun 2013 01:54:37 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-812 The supposed drying up of commercial (non-financial) lending has been the subject of fables all along during the credit crisis and afterward. There were constant anecdotal reports that banks had quit lending and that the commercial paper market had frozen, but the actual data indicated otherwise (and still do - you can look it up; the Fed has the data). There were obvious reasons for such propaganda on the part of those who wanted the finance-industry bailout to go through and who still want banks to have favorable treatment, but many economists, not to mention the media, bought into the idea apparently without looking at the data (Dean was one of the few who questioned the idea that commercial credit had dried up). - skeptonomist Fri, 04 Jun 2010 04:15:07 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-806 Like nearly everyone else, the banksters are being driven by an intense and shared fear of spending. Contrary to Richard Koo, recovery from this "Yin phase" fear is not endogenous and assured. Last time around, Americans overcame their entrenched fear of spending only when they acquired an even greater fear--fear of destruction by Japan and Germany. What will it take this time? Fear of crude oil's destruction of the north Atlantic ecosystems? Fear of economic and political domination by China? Or, perhaps, the invention of an entirely fictitious enemy. Who would be America's Jews, I wonder. Latinos? Muslims? We all would like to think the world will return any day now to prosperity and peace. But how so? By some sort of Walrasian or Keynesian or Friedmanite magic? That is to say, we should forget everything we know about human history and its manifold positive feedback loops. Instead of history, America is in heaven, right? - jan Fri, 04 Jun 2010 02:27:39 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-804 A year ago March when the Market reached one of it lows, I started buy lots of very under priced preferred stock, that at the time were yielding about 30% dividends, these stocks never stopped paying their dividends, alhough the yields are somewhat lower now, as the prices are much higher. So, there is no longer as much a need to borrow, later this year I plan to buy a new shed for my back yard, and when and if the electric cars ever reach the market, I would like one of those. The economy will recover, and it doesn't require banks to give loans. We can recover without them, it might just take a little longer. A lot of us come from parents and grandparents who were frugal, we know how to be that way too. - Richard Fri, 04 Jun 2010 01:29:42 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-801 So, NOW banks worry about the creditworthiness of their loan applicants?!!?! THE ONLY REASON YOU HAVE ANY MONEY TO LEND AT ALL IS BECAUSE THE TAXPAYERS MADE IT AVAILABLE TO YOU, YOU JACKASSES! Lend it already!! - Queen of Sheba Thu, 03 Jun 2010 19:04:59 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-800 Who’s on first base? Small business. It goes first in a recovery. Who's on second? Bank credit. It goes second in a recovery. Who's on third? Demand for small business service. It goes third in a recovery. But small business supply is on first. How can it go first when its demand is on third? Because demand reaches home first before supply ever leaves first for second. How can demand reach home plate when bank credit is still on second which small business needs to leave first? We have a pinch hitter known as Pump Primer Keynes who can break the stalemate, but every since the umpires joined Zero Sum Teabaggers For No More Debt, whenever Keynes primes the pump with a run batted in, the umpires deduct one point off the score to cancel it out, so it can't be used as a deficit to run up the score and win the game. - izzatzo Thu, 03 Jun 2010 14:44:46 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/small-business-loans-are-down-in-a-recession-why-should-we-be-surprised/#comment-798 and that's the reduced demand for credit. - Tao Jonesing Thu, 03 Jun 2010 13:39:28 +0100