Will easing lending standards bounce the economy back?
I recently came across an article on Blomberg.com that caught my eye. It made reference to a recent survey made by the Federal Reserve, which apparently showed that banks have eased standards and terms on some types of business and household loans in the past three months. If true, this could boost consumer spending and help the economy bounce back. However, the survey was made of senior loan officers at various banks. I can’t help but think that the survey would be somewhat biased. I’m not sure if a similar survey of businesses and of the general public would yield the same results.