A quick look at consumer leverage
Two posts in the blogosphere caught my eye this morning - both focusing on consumer leverage. Calculated Risk points us to a Federal Reserve press release noting the "April 2011 Senior Loan Officer Opinion Survey. " Opinions are good, but the release also seems to indicate there is data showing banks are easing standards and terms on loans for both businesses and consumers. Especially consumers: "...And the net fraction of banks that reported having become more willing to make consumer installment loans rose to its highest level since the first half of 1994." The whole mortgage-backed thing is kind of in the toilet right now, along with home prices, but this info from the Fed indicates banks are willing to lend to consumers without requiring a home to serve as collateral for the loan. My initial response was cautious optimism. Perhaps the investment the nation had made in the banks (via TARP, etc.) was finally paying off with bankers now investing in consum...