US bank lending falls at fastest rate in history

Mr Rosenberg said it is tempting fate for the Fed to turn off the monetary spigot in such circumstances. "The shrinking in banking sector balance sheets renders any talk of an exit strategy premature," he said.

"It is absurdly premature to think of withdrawing stimulus while bank credit is still sliding. To have allowed this monetary collapse to occur a full 18 months after the financial cataclysm is extreme incompetence. They seem to have forgotten that the lesson of the 1930s was the falling quantity of money," he said.

Do not fall victim of the perception hype. Follow the money! I have been saying this for some time, as long as bank credit continues to contract, now at an alarming rate almost across the spectrum of credit, there will be no exit strategy.

Table Breakdown of Total Bank Credit:


Figure Breakdown of Total Bank Credit:

Source: telegraph.co.uk