biggest contraction of credit in history, with $100 billion in credit wiped out

This from Arabian Money.net

US bank credit contracts by record 16%, 

 China dumps US debt

 

 US bank lending contracted by an annualized 16 per cent in January, the biggest contraction of credit in history, with $100 billion in credit wiped out.

The Daily Telegraph reports that since the credit crisis $740 billion in bank loans have evaporated or 10 per cent of the total, another historic record. Meanwhile, it has emerged that China is pulling back on US treasury holdings which dropped by $34.2 billion in December to $755.4 billion.

this is just the calm before the storm; all it takes is one piece of really bad news to bring the whole house of cards down.

It was credit contraction that put the ‘great’ into the Great Depression – and falling bank credit and falling bond sales to China are already here.

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