Last quarter, we saw collapsing consumer loan supply, tighter loan conditions, and consumer demand falling to record low levels.
That was then.
This is now. the latest round of bank earnings saw a collapse in loan loss provisions across the US banking sector, which miraculously plunged from near all time highs back to pre-covid levels in the span of just a few weeks.
True in C&I and real estate.
Despite that “open for business” attitude in the banking sector, not many takers.
For most Americans, the economic environment is depressing with C&I loan demand now at levels last seen just around the Lehman crisis.
With consumption-funding loans facing covid closures, what can one expect for the broader economy?