JPMorgan Chase’s economic prognostication
JPMorgan Chase’s senior economist commented recently that he believes the economic recovery is on track. As part of the justification for this belief, Chase gives this information:
Robert F. Ryan, Chase region executive for western New York, said the bank is seeing greater use of commercial credit by clients. It means businesses are ramping up spending and investing, he said, a positive economic sign.
I do see one small problem with that.
Chase has been hounding ordinary non- business customers for a while now to switch from regular credit cards to their Ink credit card, a professional business card. As many small-business owners know, much small-business financing is done through credit cards. Small businesses have had a particularly hard time in the recession because banks like Chase cut their credit lines severely, cutting them off from the credit they needed to run their day-to-day operations and in many cases, expand.
I can’t help but wonder if Chase is smart enough to realize that an increase in business credit card use, which they are agressively giving to non-business customers to get around the Credit Card Act of 2009 rules, does not equal an increase in commercial credit.
Hmmm.
Ineptitude | admin September 12, 2010
