Fueling recovery: business and consumer lending on the rise

Credit is the fuel for economic recovery and expansion. We may be seeing the beginning of the next credit expansion, with the nation's largest commercial banks finally increasing their lendings to both businesses and consumers, see this WSJ report.

Signs of a lending rebound in business loans already were evident at some big U.S. banks, and Mr. Dimon cited "fairly broad-based strength across corporate, middle market, even small business." But consumer lending has lagged behind because of unemployment, foreclosures and the reluctance of many Americans to go deeper into debt.

Now, the economy is gaining momentum, as shown by the Commerce Department's report Friday that consumers spent more for the sixth straight month. That means profit-hungry bankers are growing more eager to make new loans, especially to borrowers with strong credit histories.

JP Morgan has just reported a great quarter. More are yet to come from Wells Fargo, Bank of America, and Citi this week.

According to Dick Bove, an influencial bank anaylst, banks are entering a "golden age."