"Credit can be manufactured-not so the willingness to borrow, which rests on faith in the future". This quote comes from page 275 of The End of Wall Street, a masterpiece chronicling the recent financial meltdown written by Roger Lowenstein. This key insight speaks to one of the nagging issues for those of us in the "durable goods" sector, specifically it doesn't matter how cheap money is, if people are too afraid to spend it.
Which leads me to the subject of today's posting - The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing, rose 4 percent in March, the first year-on-year gain since October 2007. The report followed that while accounts delinquent 180 days or more rose to a 5 year high, accounts that were 30 days or more behind plunged by the most in 11 years. This indicates a declining trend in delinquencies.
It appears that people are beginning to have faith in the future again...
Which leads me to the subject of today's posting - The Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing, rose 4 percent in March, the first year-on-year gain since October 2007. The report followed that while accounts delinquent 180 days or more rose to a 5 year high, accounts that were 30 days or more behind plunged by the most in 11 years. This indicates a declining trend in delinquencies.
It appears that people are beginning to have faith in the future again...
