Despite the roller coaster ride in equities this month, volatility remains subdued across many asset classes.
GDP growth is hovering near the 40-year average of 3.4 percent. Since we’re technically in a recovery, the economy should be growing faster than average, and the fact that it isn’t indicates potential GDP is lower than in other recoveries.
In this post-crisis era, it¹s easy to cringe at the notion of easing lending standards. But the recent increase in business loans is actually a sign that the credit crunch is fading and the economy is improving.