lending Tag

Disturbing Commercial Bank Trends

10 Apr, by Steven Vannelli, CFA in Economy, News

Lost in the Good Friday holiday and the jobs report was the weekly report on bank lending, deposits and securities holdings. Keeping in mind this data is always a week old, it shows the retreat from banks continues. Small banks have now experienced about $250...

Does the Fed Have a Brewing Velocity Problem?

17 Nov, by Steven Vannelli, CFA in Economy

A basic tautology that economists consider when thinking about monetary policy is the velocity of money. MV=PQ translates into Money*Velocity=Price*Quantity. Of course, price*quantity is nominal GDP while “M” is the money supply (for example, M2) while “V” is velocity, or the number of times the...