Professor Mark J. Perry's Blog for Economics and Finance
Commercial and industrial loans at large commercial banks in the U.S. set a new record of $801 billion in the week ending September 24, going above the $800 billion for the first time, according to weekly banking data just yesterday by the Federal Reserve (see chart above, click to enlarge).
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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the commercial paper market is frozen.
to replace normal commercial paper financing, companies have to use existing bank lines of credit instead.
subtract about $200 billion from that chart to get the real change in C&I credit outstanding.
"The commercial paper market has shrunk by more than $200 billion in the past three weeks, led by financial commercial paper . . . The latest figures on commercial bank lending suggest that some firms have been able to turn to their banks to draw on pre-arranged lines of credit . . "
read more here
Companies are drawing down existing credit lines and hoarding cash.
Bobble, it's not just the commercial paper market! Now the Internets Tubes are frozen! I went to that link and got this:
"This site is temporarily unavailable.
Please notify the System Administrator"
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