Markit research is out with the results of their latest credit conditions survey. The results show an increased need for credit in all major economies, but a continuing lack of availability. 1 in 10 firms report business constraints due to a lack of credit. Credit terms have tightened in every country except China and Germany. Spain and Russia are particularly weak.
Chris Williamson, Chief Economist at Market said:
“While surveys such as the PMI’s sugges the worst of the recession is over, a doubling in the number of companies reporting that their business is constrained by a lack of available credit over the past year to one-in-ten provides a timely reminder that bank lending remains a problem and is likely to subdue in many countries.”
Source: www.markit.com
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
eh
Maybe this is explained by the that it’s outfits like GM that need credit.
ejack
Does this indicate that the TED spread being low is simply a liquidity trap?