Federal Reserve: Banks Are Now More Eager to Lend

[tylerdee]

Federal Reserves survey of senior loan officers showed that 6% of banks increased credit limits in the first quarter, while one in four banks reported greater consumer demand for both higher credit limits and new card loans.
Is it safe to say the U.S. economy is healing?

[On the Road]

1. It's Only 6% of Banks, But It is Certainly a Good Sign

Banks withdrawing credit was a major, major factor in the recession. I had just bought an investment house when the banks stopped lending and it almost killed me having to support that without the money for renovation. A lot of people wanted to buy houses at dirt-cheap price, which would have supported the crashing real estate market, but couldn't get the loans.

Banks don't need to make risky loans. They just need to follow their own guidelines and practice common sense.

[sendero]

2. What part of /.

.... "this is a demand side problem" do people not get? Banks lend to businesses that have a way to turn capital info profits. When the problem is that no one is buying because they have no money, no amount of "tax breaks for small business" or "relaxed lending" is going to do anything at all.

It seems that many "economists" are fighting the last war.