Posted by WARREN MOSLER on January 27th, 2010
Lending expansion often follows inflation, as higher asset prices and higher incomes support larger loan balances.
Cutting lending as this article implies can set off downward spirals and rising unemployment if domestic demand isn’t somehow supported by
enhancing consumer incomes.
ICBC says lending pace has slowed at end of January
* Latest signal of tightening that may rein in growth
* Official newspaper says some banks have recalled loans
* Chinese regulator renews demand for even pace of lending