Tuesday, September 08, 2009

Bloomberg U.S. Financial Conditions Index Reaches A 22-Month High, Highest Level Since Oct. 2007

The Bloomberg U.S. Financial Conditions Index provides a daily measure of the relative strength/weakness of the U.S. money, bond and equity markets, and is considered a useful gauge of bank lending conditions and the overall availability of credit. The Financial Conditions Index reached -0.821 last Friday, the highest since October 31, 2007 and is now at a 22-month high (see chart above).

5 Comments:

At 9/08/2009 2:37 PM, Blogger 1 said...

Can someone answer this question?

Does the following have any impact on the financial conditions index?

Senate must raise debt ceiling above $12T

 
At 9/08/2009 4:11 PM, Anonymous william said...

Or how about $6.1 billion decline in revolving credit, and a $15.4 billion drop in non revolving credit, on a $4 billion expected decline! June's decline was revised downward to a $15.6 billion reduction in credit.

 
At 9/08/2009 11:27 PM, Blogger juju said...

As someone who looks at business books.
One should always look at percentages first, as this give context when matched with the historical data.
Once context is achieved, then I look at the actual dollars.

Dollars raise emotions. Percentages give context.

 
At 9/09/2009 2:13 AM, Blogger PeakTrader said...

1, the government is crowding out the private sector. People don't understand the U.S. economy is screwed, from huge government spending and slow growth policies, which will make it harder to pay down that debt.

I see in your article, they're still blaming Bush. However, Bush wanted another tax cut in late '08, which didn't get passed. A deep contraction and slow recovery were unnecessary. Anyway, the index shows the U.S. is back to the pre-Lehman mild recession level.

 
At 9/09/2009 5:33 PM, Blogger 1 said...

"1, the government is crowding out the private sector. People don't understand the U.S. economy is screwed, from huge government spending and slow growth policies, which will make it harder to pay down that debt"...

Exactly Peak Trader!

"Anyway, the index shows the U.S. is back to the pre-Lehman mild recession level"...

Well if this is true how long will that last in light of what the AP is reporting: A look at Baucus health care plan

Its really quite ugly and hopefully NONE it will pass...

Re: "they're still blaming Bush"...

Consider the following from the Heritage Foundation's blog site which are admittedly guesses: Bush Deficit vs. Obama Deficit in Pictures

 

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