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The Federal Reserve recently released the results of its latest survey of senior bank officers. Like the economy—not coincidentally—the bankers’ attitudes were mixed. Things have improved over the past year. Bankers on balance have shown a greater willingness to extend credit. But still, they remain very cautious. This lingering reluctance to lend, understandable after the losses of 2008-09, offers yet another reason why the economy’s recovery has proceeded so slowly and will likely continue to do so for some time to come. Still, there are tentative signs that the environment is easing, certainly enough to support a recovery of sorts.

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