{"id":2762,"date":"2010-12-31T04:09:04","date_gmt":"2010-12-31T11:09:04","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=2762"},"modified":"2018-08-16T17:44:47","modified_gmt":"2018-08-16T21:44:47","slug":"borrowers-slowly-reappear","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2010\/12\/31\/borrowers-slowly-reappear\/","title":{"rendered":"Borrowers slowly reappear"},"content":{"rendered":"

You may recall that I have been critical of the Federal Reserve’s plan to introduce money into the economy through both a lowering of interest rates and “quantitative easing.”\u00a0 My point was that even with benchmark government interest rates at nearly zero, folks still weren’t exactly lining up to borrow money.\u00a0 That appears to be changing.<\/span><\/p>\n

Thursday the Federal Reserve reported that for two consecutive months the amount of commercial loans held by banks is slowly increasing.\u00a0 In other words, borrowers are going to banks to borrow money and those banks are actually lending money to those folks.\u00a0 Furthermore, Moody’s Analytics estimates that fourth quarter commercial lending has risen by 0.2% – the first quarterly rise since the onset of the recession.\u00a0 Clearly this is a very tiny amount.\u00a0 However, these data are extremely encouraging.\u00a0 Why?<\/span><\/p>\n

For an economy to grow long-term it needs great, innovative ideas.\u00a0 People need to find new ways of solving old problems or create entirely new, but important, things.\u00a0 Further, those ideas have to be properly funded in order to become material and tangible.\u00a0 Sans funding, many of these great ideas die.\u00a0 For two years people with great ideas have had a difficult time finding money to support their ideas.\u00a0 So a properly functioning economy has healthy capital markets (i.e. money raising venues).\u00a0 One of the reasons that the economy has been so slow to recover is because people couldn’t raise money to develop their ideas into new businesses.<\/span><\/p>\n

The two predominate forms of capital are debt and equity.\u00a0 Now one of the two markets, the debt capital markets, are finally starting to thaw.\u00a0 Money flow<\/strong> is the blood for the economic body and it seems that debt capital is finally being pumped through the system again.\u00a0 Now we need for the equity markets to thaw, too!<\/span><\/p>\n

Jason<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

You may recall that I have been critical of the Federal Reserve’s plan to introduce money into the economy through both a lowering of interest rates and “quantitative easing.”\u00a0 My point was that even with benchmark government interest rates at nearly zero, folks still weren’t exactly lining up to borrow money.\u00a0 That appears to be […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-2762","post","type-post","status-publish","format-standard","hentry","category-the-blog"],"_links":{"self":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/comments?post=2762"}],"version-history":[{"count":0,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/posts\/2762\/revisions"}],"wp:attachment":[{"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/media?parent=2762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/categories?post=2762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonapollovoss.com\/web\/wp-json\/wp\/v2\/tags?post=2762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}