Fed paper on SME credit summarized by Izzy at FT.
"The Cleveland Fed concludes consequently that there are thus a “multitude of factors” that explain the decline of SME credit.
Though there is one theme that links all of them: Abundance.
This is best illustrated by the fact that there are clearly not enough productive uses of capital to ensure safe returns out there, and that most businesses are inadvertently responding to this problem by unwittingly constraining supply."
"The Cleveland Fed concludes consequently that there are thus a “multitude of factors” that explain the decline of SME credit.
Though there is one theme that links all of them: Abundance.
This is best illustrated by the fact that there are clearly not enough productive uses of capital to ensure safe returns out there, and that most businesses are inadvertently responding to this problem by unwittingly constraining supply."
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