Strategist confirms evidence of credit crunch for investors.
Originally Published 2 years ago — by MarketWatch
The chief economist and partner at Apollo Global Management, Torsten Slok, has warned that the "credit crunch has begun" after the latest Fed data showed a sharp drop-off in bank lending post the Silicon Valley collapse. Slok highlighted several notable points in that data, such as the biggest two-week decline in bank lending in US history, the biggest two-week fall in lending to real estate on record, the biggest two-week fall in bank lending to corporates on record, the biggest decline ever in lending to multifamily construction, a fall in auto lending, and a surge in banks selling mortgages and drawing on the Fed and the Federal Home Loan Bank system to help meet deposit demand.