Technical Review

Demand for Loans Is Weak

The Federal Reserve released the Senior Loan Officer Opinion Survey (SLOOS) last week and the results were interesting. The percentage of banks increasing their Lending Standards fell from 50.8% for the second quarter to 33.9% for the third quarter. On the surface the drop in the number of banks tightening standards looks constructive but recessions have begun whenever the percent was above 25%. It’s likely that banks tightened standards in the second quarter in response to the regional bank crisis and the perceived higher risk of recession. GDP grew 4.9% in the third quarter and the...

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jimwelshmacro [at] gmail [dot] com ()