Credit is the life blood of a capitalistic system. When consumers borrow money to buy things, it creates growth in America. When business owners can borrow money for growth, that creates jobs too. The good news is that credit is beginning to flow through most sectors of the American economy. The bad news for real estate is that it is one of the only sectors that is still waiting for credit expansion.
Let’s take a look at the charts. Commercial and industrial loans are made to business owners. They use these funds to buy other businesses, vehicles or other buildings and equipment and to hire more people. This is very bullish for the outlook for business growth and expansion. Since the trough in October 2010, C&I loans have increased by 28.3 percent.
Read more...Bank Lending Increasing, Except for Real Estate | the Blog of the Real Estate Center
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.