Seeking Alpha Seeking Alpha Portfolio App for iPad It is the
bank loan officer who is, with the help of the Fed, the person
who creates the money we use and who maintains the level of
supply. As we also know: “He who prints the money makes the
rules”.  So, for one explanation as to why the equity markets
rise and fall, we ought to turn to the Senior Loan Officer
Opinion Survey on Bank Lending. It happens to be a monthly Fed
report.  Over the past 16 years in the U.S. there have been four
periods of equity market shake-outs – 1990, 1994, 1998 and 2000
-- but 2000-2002 was the most severe. In the chart below, look
at the light blue shaded indication of the banker’s willingness
to lend – yes, the turndown periods were clearly 1990, 1994,
1998 and 2000 -- and 2006.  lending trends  Now whether the
market tanked because of credit tightening or whether there was
a tightening on account of a slowing economy, patterns of
spending that exceeded income, falling collateral values, etc,
is not my point. I am simply sayin