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Brace Yourselves for an Economic Avalanche, Because a Major Credit Crunch Has Already Begun
by Michael Snyder The Economic Collapse Blog
This is moving even faster than a lot of us thought that it would. For weeks, I have been warning my readers about the coming credit crunch. When banks get into trouble, they start getting really tight with their money. That means fewer mortgages, fewer commercial real estate loans, fewer auto loans and fewer credit cards being issued. But I thought that it would take some time for the credit crunch to fully kick into high gear. Unfortunately, I was wrong about that. In fact, it is being reported that during the last two weeks of March bank lending in the United States “contracted by the most on record”…
US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy.
In other words, we have never seen bank lending shrink faster than it did during the second half of March.