From commercial and industrial to credit card and auto loans, banks are getting more restrictive about lending. The economic fallout won’t be pretty.
“Generally, across most if not all categories, we’ve been seeing a rate of change slowdown,” explains Financials analyst Josh Steiner in this clip from The Call @ Hedgeye (available to watch FREE now as part of All Access Week).
“This is a trend that’s been in place for some time, a trend that clearly persists. This rate backdrop that we’re in is almost assuredly going to keep that trend going. So, I think we’re finally hitting that wall.”
In a recent interview, Citadel CEO Ken Griffin gave investors his thoughts on lending data, also forecasting a slowdown, but his analysis was vague.
“What we’re doing is NOT sitting there giving you a feeling about that,” adds Hedgeye CEO Keith McCullough. “What we’re doing every week, for those of you that are new to this today, is giving you an explicit mathematical update. It’s not [Ken Griffin’s] job to be in the weeds on it, but it is ours.”
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