Total commercial bank credit grew even during the deep recession of 1982. Keeping total bank credit growing is the #1 objective of all the actions being taken by the Treasury and the Federal Reserve.
In March, total bank credit declined and then stopped growing for six months.
In the five weeks ending October 15, total bank credit surged $520.8 billion to a new record high near the $10 trillion level.
Total bank credit is back where it would have been if the growth had not stopped last March. This is a sure sign that the healing process has begun in the credit markets.
Stocks don’t keep falling when economic fundamentals are improving.