Myths About the Financial Crisis of 2008

The Research Department of the Federal Reserve Bank of Minneapolis has published a paper with the title above:

http://www.minneapolisfed.org/research/WP/WP666.pdf

This is an 18 page document, consisting substantially of charts and diagrams. It states the following:

"The financial press and policymakers have made four claims about the nature of the crisis.

1. Bank Lending to nonfinancial corporations and individuals has declined sharply.
2. Interbank lending is essentially nonexistent.
3. Commercial paper issuance by nonfinancial corporations has declined sharply and rates have risen to unprecedented levels.
4. Banks play a large role in channeling funds from savers to borrowers.

Here we examine these claims using data from the Federal Reserve Board. At least based on data up until October 8, 2008, we argue that all four claims are false."