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The reason why M2 is so misleading is because the money isn't flowing through the system, as highlighted by the drop in Velocity of M2.
Initial earnings reports from large US banks have highlighted a common theme: the lenders aren’t lending.
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Initial earnings reports from large US banks have highlighted a common theme: the lenders aren’t lending.
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JPM: $19.2 billion net increase in loans to consumers and small businesses in 2020 can be accounted for entirely by lending through the PPP. Of a $39 billion increase in lending that wasn’t to consumers, more than half went to clients in the wealth management division.
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Citigroup’s loans to small businesses and consumers barely grew.
Wells Fargo increased its small business lending by around $8 billion during the year – though it also said it funded around $10.5 billion of PPP loans.
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Wells Fargo increased its small business lending by around $8 billion during the year – though it also said it funded around $10.5 billion of PPP loans.
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