This from Reuters:

“While credit conditions have improved in the past few months, “reports on bank lending show significant declines in consumer loans, including credit card loans, and commercial and industrial loans,” Geithner said.”

And what’s wrong with lower lending and leverage? Nothing, unless your friends make their money by flipping loans.

Lower leverage from ponzi finance in the economy will ultimately be very positive. So let’s hope the ponzi financiers continue to report significant declines in lending, so as to create a credit system which helps the real economy, rather than a credit system that is an end on itself with no connection to the real economy.