For months Alex Tabarrok has being doing a great job yelling to all the world that this “credit crunch” is bogus. What’s hilarious is that even his critics–see this post by Mark Thoma–rely on evidence that actually proves Alex’s case. I summarize the relevant findings in this blog post. An excerpt:
During the dark days of the credit crunch, when we were warned the entire financial system would collapse if we didn’t cough up $700 billion, the supply of “industrial and commercial loans at all commercial banks” was at an all-time high, and in fact its year/year rate of growth at its lowest point was “only” 12% or so. If you exclude the last few years–which everyone agrees was an insane period with perhaps criminally lax lending standards–then the year/year rate of growth in these loans was higher than at any point going back to the early 1980s. Really, this is amazing, given all the fear-mongering we’ve been hearing.