Tuesday, July 28, 2009

More Signs Second Dip of Double Dip Recession Just Ahead

Leading US banks are not lending as much as they were at the start of the year, WSJ reports.

An analysis by WSJ showed the total loans held by 15 large US banks shrank by 2.8 percent in the second quarter, and that more than half of the loan volume in April and May came from refinancing mortgages and renewing credit to businesses and not fresh loans.

The banks surveyed include financial giants such as J.P. Morgan Chase, Bank of America and Citigroup as well as regional banks such as Fifth Third Bancorp, based in Cincinnati, and Regions Financial Corp. of Birmingham, Alabama.

This shouldn't come as a surprise, since Bernanke has cut off money printing in the second quarter. Get ready for the second dip, in what looks like a double dip recession.

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