New Report from Celent

It is amazing to me that with all the information we have at our finger tips, how LITTLE knowledge we have. I saw this report from Celent on an industry press release and it is shows how crazy things have become. It seems the media reports what ever they want to / need to to suit their story - with little concern for the facts. Check this out:


This goes to show - we do not have a credit crisis in the US. We have a government crisis. Another quote from the article:

In many cases, it appears that these policymakers’ assumptions regarding the credit crisis are incorrect. Far from seeing a tightening of credit, a number of measures show that credit has expanded, and Celent finds that the lending markets are in surprisingly good health. Data published (in most cases by the Federal Reserve itself) show that:

• Overall lending by US banks is at a record high and has increased during the credit crisis.
• Interbank lending is at record highs and has increased during the credit crisis.
• Consumer credit is at record highs and has increased during the credit crisis.
• Commercial paper markets are operating within their historical norms.
• Lending by banks to businesses is at record highs and has been growing rapidly.
• Municipal bond markets are operating within their historical norms.
• Deposits at banks have shown a substantial increase since the start of the credit crisis.

“It appears that policymakers are making a variety of mistakes regarding the current financial crisis. If that is the case, the policy tools that they are employing may very well be the wrong ones,” Octavio Marenzi, head of Celent and author of the report.

I think it time that we aggressively start to share the bad news. We need a revolution again.

E