Despite some of the highest interest rates we've seen in the last 25 years, our Commercial Banks our still not making new Loans🟢  

Instead, it looks like excess liquidity has mostly been moving into Securities🟣- but that seems to have slowed in the 4Q as well

The problem is, if the Banks can only generate a 2% - 3% annual increase in Loans, this won't be sufficient to move the economy forward - especially if we are headed into inflationary environment (see loan production in the 70s)

In normal circumstances, high interest rates have led to significant increases in Credit creation - just not currently - and starting when SVB failed  

New Loans create new Deposits - and new Deposits are what is needed in the system to repay the old loans when they mature🫤

We desperately need a Credit Impulse in the Banks