It’s really hard to kill this meme. Note the label on this graph from today’s Free Exchange post:
Now change that heading to read “Business borrowing.” Sort of gives a different impression, right?
The idea that the problem’s on the supply side is pervasive, and false or at least wildly overblown. Lending rates are at historic lows. But the credit-crunch storyline gives very effective aid and cover to the financial industry in justifying its inordinate size and power.
I tried to drive a stake through the heart of this vampire squid back when we saw that first dive, back in 2009, and the situation is much the same today. (See also Related Posts at the bottom of that post.)
Cross-posted at Asymptosis.