US credit shrinks at Great Depression rate prompting fears of double-dip recession

[IE]

Both bank credit and the M3 money supply in the United States have been contracting at rates comparable to the onset of the Great Depression since early summer, raising fears of a double-dip recession in 2010 and a slide into debt-deflation.

http://www.telegraph.co.uk/finance/...-prompting-fears-of-double-dip-recession.html

 

[selkirk]

good article IE, also heard that in the US many financial companies are reducing the amount of low cost borrowing options, ie. lines of credit in favour of higher interest options...ie. credit cards.

the central banks are putting so much cash in the system to try to reinflate the economy, time will tell if it works.

thanks
selkirk