What Credit Crunch?

by: Mark J. Perry

Based on data from the St. Louis Fed, Total Consumer Credit Outstanding reached an all-time high of $2.572 trillion in July (see chart above). The way the banking system is described in the media, you'd think the supply of commercial bank credit has completely dried up, e.g. do a Google News search for "credit crunch" and you get almost 45,000 results. At least for consumer credit, and at least through July, the supply of consumer credit has never been higher.