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Rising Bank Credit Bodes Well For Economic Future

The European debt is threatening gains made in the U.S. economy.

U.S. banks have made a comeback in recent months, and that news is a good sign of the economy gaining strength. Bloomberg reports that financial institutions engaged in more commercial and industrial lending in the third quarter of 2011.

The growth reached an "average annual pace of

U.S. banks have made a comeback in recent months, and that news is a good sign of the economy gaining strength. Bloomberg reports that financial institutions engaged in more commercial and industrial lending in the third quarter of 2011.

The growth reached an "average annual pace of almost 10 percent … the highest since the comparable quarter in 2008," the source added.

Because of the strong Q3 lending, Q4 production may be much higher. It could even carry into 2012, as more businesses seek to expand their operations.

Robert McTeer, the former Dallas Fed president, told the news outlet that due to the strong performance, it was unlikely that the central bank's policy group would adopt more monetary easing measures at its next meeting, set for Tuesday.

"The bank-credit statistics argue that more stimulus isn’t needed," McTeer said.

The banks in Europe are not faring as well, however. The Guardian said on Monday that due to the failure of a European summit in Brussels last week, all eyes were on the pending credit ratings from Standard & Poor's. Dominic Rushe reported that U.S. investors were getting jumpy because of the bad news across the Atlantic.  

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