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Consumer Credit Demand, Supply, And Unmet Need During The Pandemic


Consumer Credit Demand, Supply, And Unmet Need During The Pandemic
from Liberty Street Economics
It is common during recessions to observe significant slowdowns in credit flows to consumers. It is more difficult to establish how much of these declines are the consequence of a decrease in credit demand versus a tightening in supply. In this post, we draw on survey data to examine how consumer credit demand and supply have changed since the start of the COVID-19 pandemic.
The evidence reveals a clear initial decline and recent rebound in consumer credit demand. We also observe a modest but persistent tightening in credit supply during the pandemic, especially for credit cards. Mortgage refinance applications are the main exception to this general pattern, showing a steep increase in demand and some easing in availability. Despite tightened standards, we find no evidence of a meaningful increase in unmet credit need. ....

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The Christian Science Monitor Daily for December 10, 2020


Amid a new surge of coronavirus cases, many front-line workers and others are facing a toll that’s emotional and mental as well as physical.
Where does a person find hope? From emergency rooms to retail shops and virtual classrooms, some common answers involve building human connections and managing expectations.
“We’re continuing to demand as much of ourselves as we did before – to be the perfect parent, the perfect worker, the perfect student,” says Wendy Dean, a psychiatrist and co-founder of a nonprofit group supporting health care workers. “People have to find a way to have forgiveness for themselves and recognize that they’re doing the very best they can.” ....

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