Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Surge In Commercial Lending Raises Bubble Worries

Tuesday, June 11, 2013 - 7:58 AM
U.S. banks reported $1.53 trillion in commercial and industrial loans in the first quarter, a 12 percent year-over-year gain.  Bankers and analysts say this big gain in C&I lending looks more like an early asset bubble than an economic breakout.

Bankers are quick to blame the Fed's easy money policy, which since 2008 has relied on three rounds of bond-buying and cutting short-term interest rates to near zero to spur economic growth. The purchases of mostly Treasury and mortgage securities - known as quantitative easing and nicknamed QE1, QE2 and QE3 - have injected trillions of dollars into the financial system.

http://www.reuters.com/article/20...0ML2013061
7
ShorebreakShorebreak2,602 posts since
Apr 6, 2010
Rep Points: 14,087
Reply