As is usually the case the conventional wisdom from the main stream media is dead wrong and not supported by any real facts. Thanks to our friends over at the Cato Institute we can get to the bottom of the sky is falling, doomsday, Depression scenarios that they are trying to use to ram through this 700 Billion bail out package on us.
Here’s a few examples of the histeria that they are spewing:
On Sept. 24, Congressional Budget Office Director Peter Orszag warned Congress that "short-term lending was virtually shut down." The following day, The Washington Post reported that "tightening [bank] credit conditions are already affecting some consumers and business." Just before the $700 billion deal was announced on Sunday, an alarmed Fox News anchor said, "McDonald’s can’t even get a loan." (That comment confused a few franchise owners with the company.)
On CNBC Monday, Democrat majority leader Steny Hoyer said the objective of the rescue package is to "unlock the credit" for consumers and business. And a Wall Street Journal editorial writer told CNBC, "Until we get the banks lending again, the economy will continue to contract."
Below you will see the the the actual #s from the Federal Reserve Board, what do you know they actually track these things!
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Federal Reserve Board, Asset and Liabilities of Commercial Banks in the United States (H.8).
In August, bank loans to consumers were 9.5% higher than they were a year earlier–the fastest increase since 2004. The year-to-year increase in consumer and industrial loans was 15.5%, down only slightly from a recent record high of 21.6% in March. Real estate loans were up 4.1% for the 12-month period ending this August–flat lately, but not down.
Also do not forget that it is election season!
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