February 10, 2022

Commercial and industrial loans surged in March and  April of 2020 as businesses of all sizes exercised lines of credit as revenue streams shut down in the wake of the stay at home orders.  They piled up enormous sums of cash for fear that the recession might last for an extended period of time and they might need it to keep the doors open.  But then the government poured enormous sums of stimulus money into the economy.  Consumers each for a $1,200 check from the government to tide them over.  Stimulus money was made available to businesses through the Paycheck Protection Program, and The Federal Reserve provided ample credit.  The economy came roaring back.  Commercial and industrial loans have been steadily declining since then as most businesses have weathered the storm and never needed the excess cash that they borrowed.

In fact, corporations are still cash flush with record amounts of cash in relation to assets.

Stephen Slifer


Charleston, SC