Source: Across the Curve
Hiany comments about that :"What Credit Crunch?| Peter Klein |I’ve talked before about the wild claims about credit markets being “frozen,” sound investment projects that can’t be funded, worthy borrowers who can’t get loans, and all the rest, claims that are totally unsupported by theory or empirical evidence. Nobody, least of all Paulson and Bernanke (or their ostensibly free-market supporters, such as Mankiw and Cowen), has bothered to provide any data to support these claims. A new paper by three Minneapolis Fed economists, “Four Myths About the Financial Crisis of 2008,” shows that the wild claims are virtually all false. The data show, for example, that despite a rise in inter-bank lending rates, actual lending between banks is about the same as before, and lending between banks and firms and individuals has risen, not fallen, during the crisis. (Loan volume is a better indicator than interest rates, which reflect default risk.) This analysis is based on publicly available data, the same sources I pointed to before. Why is nobody paying attention?http://www.minneapolisfed.org/research/WP/WP666.pdf "