Are you seeing that money is NOT tight? Are car loans harder to get? Is consumer credit easy to get? Are businesses having unprecedented tough times getting credit?
Home loans have probably just returned to historical and only because the Gov. is funding most of the mortgages, not banks.
Agreed things had to go down to get back to historical norms but car loans and business credit have always flowed. They must flow or the economy suffers hard. Banks do not want to lend money; they are sitting on it just like the Krugman story says. No?
