Credit and Economic Growth Update

by Laura Ehrenberg-Chesler on June 4, 2010

in Credit Crisis,Economic Indicators,Employment

A June 2 article in Real Money written by Doug Kass of Seabreeze Partners, was a reminder that all is not back to normal in the credit markets.  In fact, far from it. 

Doug makes the point that while many large corporations are “awash in cash” and therefore have the ability to “self-fund”, it is a different story for many small companies who are still struggling to obtain the necessary credit to fund their day to day operations.

While the availability of credit is just one data point, and does not represent a comprehensive economic overview, it is nonetheless important.  In a continuation of the article, Doug rightly states that “credit is the lifeblood of our economy, and without it, confidence sinks, capital commitments are postponed, and job growth is lackluster.”

We are getting ample evidence of that this morning.

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