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The Economy’s Vicious Cycle

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By Barry Ritholtz - March 15th, 2010, 3:15PM

I think the WSJ gets this wrong:

The dearth of credit for hundreds of thousands of small businesses is keeping the economic recovery from gaining momentum. WSJ’s Neil Hickey reports.

NOTE: The NFIB reports its a lack of demand, not credit, that is hurting small business activities.

And the ladder company was referencing Capital, not Credit — there is a huge difference between the two.


3/14/2010 3:30:00 PM

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Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

One Response to “The Economy’s Vicious Cycle”

  1. Alex Says:
    March 15th, 2010 at 5:54 pm

    Yeah, the NFIB has been pretty clear on that for months now. They have complained about government interference, making it difficult for small businesses.

    I will say that I believe banks are probably cutting back on small business lending at the SMALLEST level, as most of that was either a glorified credit card or second mortgage on the sole proprietor’s home. And I think we know how loan growth these two segments has been going.

    But is such a cutback so bad? Should everyone get to start their own “Scotch Boutique” using a credit card?

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