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“There was no credit crisis”

February 10, 2009

This isn’t from some radical leftwing, libertarian, or Georgist journal.

One reason things didn’t fall apart when Congress didn’t immediately act as Paulson and Bernanke demanded [in September ’08], may be that there wasn’t any danger of a meltdown in the first place. So say three senior economists working at the Federal Reserve Bank of Minneapolis, who in October examined the Fed’s own data, and concluded in an article titled Facts and Myths About the Financial Crisis of 2008 that the claims that interbank lending and commercial lending had seized up were simply not true. “Bank lending to consumers and to non-financial companies had not ceased, and banks were lending to each other at record levels,” says V.V. Charri, an economist at the Minneapolis Fed.

— Dave Lindorff

Thanks to Econospeak.

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One comment

  1. Maybe these three senior economists should have taken a look at the clock from the post below?



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