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Banks Still Refuse to Lend to Businesses

Gary North
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July 22, 2009

Until banks start lending to private industry and businesses, this recession will not go away. So far, they prefer to keep their money at the Federal Reserve for 0.15% per annum, guaranteed. Bankers do not trust borrowers.

Look how long it took banks to startlending after the 2001 recession officially ended, according o the private think tank, the NBER. This is why some analysts do not believe the NBER was correct. The recession was longer than the NBER said. What if we get a replay?

This chart is published by the Federal Reserve Bank of St. Louis.

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