TARP receipants boost lending
According to a report by Neil Barofsky, the special inspector-general
for the Troubled Asset Relief Program, 83% of the 360 aid recipients said they
used the funds to boost lending.
I earned the right to use the Chartered Financial Analyst designation way back in 1996 therefore I receive the morning briefing. That was the second story from Financial Times.
Now, consumers are reducing their borrowing as fast as they can given retail sales and the reported shrinking consumer credit with a long lag. Given inventory levels, sales, and lay offs, it is my supposition that businesses are probably reducing their borrowing also. We do know the Federal Government is borrowing money hand over fist - is that who these TARP beneficiaries are lending money too?
As you think about it, it would be difficult for anyone to boost lending when no one is borrowing and nearly everyone is trying to reduce outstanding debt except of course Uncle Sam.
Take no data at face value, give it at least a cursory thought.
I earned the right to use the Chartered Financial Analyst designation way back in 1996 therefore I receive the morning briefing. That was the second story from Financial Times.
Now, consumers are reducing their borrowing as fast as they can given retail sales and the reported shrinking consumer credit with a long lag. Given inventory levels, sales, and lay offs, it is my supposition that businesses are probably reducing their borrowing also. We do know the Federal Government is borrowing money hand over fist - is that who these TARP beneficiaries are lending money too?
As you think about it, it would be difficult for anyone to boost lending when no one is borrowing and nearly everyone is trying to reduce outstanding debt except of course Uncle Sam.
Take no data at face value, give it at least a cursory thought.
Posted by Bradley Fluetsch at 7/20/2009 4:43 AM 
Categories: Economics
Tags: General Inspector Troubled bailout Relief Program horse pucky lending Asset credit crunch TARP
Categories: Economics
Tags: General Inspector Troubled bailout Relief Program horse pucky lending Asset credit crunch TARP
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