Yalies Yelling

Check out the accompanying pdf and chart collection. Executive Summary: Banks were tightening lending standards before the banking crisis, and the crisis has escalated that. We don’t think a credit crunch will ensue, though we’re monitoring the situation closely. But we agree with Treasury Secretary Yellen that banks’ tightening of credit conditions effectively can substitute for further Fed tightening. … To monitor the crisis, we keep tabs on the Fed’s assets and liabilities, commercial banks’ assets and liabilities, and particularly the amount of loans being made by both. … Also: Dr. Ed reviews “A Spy Among Friends” (+ + +).