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zzpat
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Prior to the Great Recession, bank loans increased while the US economy was slowing. This aberration led to the Great Recession. Today, the US economy is growing and bank loans appear to be falling. In each instance, bank loans are moving in a converse relationship to GDP.
Here's the chart from the St. Louis Fed. I added GDP and changed % change from the previous year (the original chart is in dollars).
fred.stlouisfed.org
One other piece of information. On closer inspection of the numbers (shorter time span) we can see bank loans began to fall in October of last year (though the fall was within the previous month's norm). It wasn't until after the election that loans fell dramatically.
What I want to know is this. Does this chart suggest there's anything to be concerned about?
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