It’s tough to find many reasons to be positive these days, but at least one indicator that can be a source of some hope is the growth in loans at US banks. After 2.5 years of contraction, loan balances have been expanding for most of this year. For those who believe that credit expansion is a unequivocal positive, this should be a boon. At the very least, it’s a sign that de-leveraging in the US is not as severe as many people would have thought. In fact, de-leveraging really isn’t even occurring.
|Click to Enlarge. Data adjusted for 2010 accounting changes to off balance sheet loans.|