Uh-Oh

The Latest Fed Data

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The latest financial data is out, and it appears that banks are pulling back, which would indicate that a recession may be on the horizon:

Starting to look seriously ominous:

When delinquencies start going up, banks tend to start tightening up lending standards a bit to keep them in check, which tends to slow down lending, which causes the economy to soften, resulting in a downward spiral that doesn’t end until public sector deficit spending increases sufficiently:

It looks like banks might be retrenching and delinquencies are rising.

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