At this stage of the business cycle, businesses want to see profits before expanding rather than expand in anticipation of profit, and many are waiting to see which way government policy and the economy will go, which suppresses the demand for borrowed funds and keeps rates low.

causalpending

Speaker

Arnold Kling

Evidence Quote

businesses want to see profits before they expand rather than expand an anticipation of profit

Source

Arnold Kling on the Unseen World of Banking, Mortgages, and Government 07/5/2010EconTalk
Created: 6/13/2026, 7:04:06 PM

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