This is a great discussion on a new site I found today. This author takes a look at the recent pick-up in business lending. While some people consider an increase in business lending a positive sign for the economy it really all depends how the business use this money. As the author points out the business are not injecting this borrowed money back into the economy. Rather many big names are simply just buying back shares, which does nothing for improving the company except for on paper.
Here are a couple charts that stood out for me.
With cheap money continuing to be available to big corporations there is reason this trend will slow. Until the cracks in the system start to grow. Watch out if interest rates ever start to rise again.
Click here to read the full post and the corresponding explanations of the charts.