Tightening Credit = Bad News For U.S. Growth

08/02/22 02:31PM EDT

https://youtu.be/Y3QTWNr3f3I

CLICK HERE to sign up for Hedgeye University FOR FREE

Hedgeye Financials & Housing analyst Josh Steiner warned subscribers about a deterioration in the Senior Loan Officer Survey on The Call @ Hedgeye this morning. “The reversal here is extraordinary,” he explains. “Credit conditions tightened across the board to a degree that I haven’t seen in a very long time.”

Why does this matter?

“This is the definition of reflexive,” says Steiner. “When banks in the aggregate are tightening financial conditions, that creates this growth slowdown, or growth drag, that then precipitates credit problems which then causes banks to further tighten.”

“If you go back and look at every historical cycle, you don’t see a reversal in this financial condition setup until very far into the point where the Fed has been easing.”

For info on subscribing to Financials Pro CLICK HERE

(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates CLICK HERE to learn more.)

© 2022 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.