Yesterday I wrote about how banks are making it harder for companies to borrow. This strongly suggests a recession within a year. Here is a chart I left on the cutting room floor—maybe it’s leftover trauma from working at the WSJ, where charts with dual axes were strictly forbidden (let alone inverted axes!). Hopefully it’s still clear: when banks say they are making loans harder to get, they follow through. Credit growth—and economic growth—falls.

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2:06 PM
May 9, 2023