Where Has All The Credit Gone? Credit Cards And Mortgage Availability Have Crashed

Where has all the credit gone?

Credit cards and other revolving debt has crashed during the Covid-shutdown recession, despite another expansion of The Fed’s balance sheet.

Yes, banks are tightening standards on consumer loans and credit cards.

Mortgage credit availability has crashed as well despite The Fed’s balance sheet expansion.

Over 50% of lenders are tightening credit standards for mortgage lending, even for GSE-eligilble mortgages.

Apparently The Fed’s spoonful of asset purchases hasn’t done anything to prevent the decline in credit availability to households.

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