This is Tight Monetary Conditions?
As a result, the overall level of debt just keeps rising and rising, not just in absolute but also in relative terms.
Here is a list of how various indicators have moved since the beginning of August:
CRB commodity price index:+14%
Bank lending: +6.5%
MZM money supply*: +6.3%
Baa Corporate Bond Yield:-0.15%:points
10-Year Government Bond Yield: -1.0%:point
2-Year Government Bond Yield:-1.7%:points
S&P 500: -4%
Dollar vs. Yuan: -4%
Dollar vs. Euro: -7%
Dollar vs. Yen: -9%
As you can see, every single indicator except for the stock market index S&P 500 clearly indicates looser monetary conditions. And even that indicates loose monetary conditions considering the dramatic decline in profits, which implies higher valuations. And while the spread between government bonds and corporate bonds have risen, this is entirely a result of falling government bond yields. Corporate bond yields have in fact fallen too.
*=Calculated by subtracting Small time deposits from and adding institutional MMMF:s to the M2 measure of money supply.