We have finally heard a lot about real rates and are even starting to see more stories about how higher yields are really punishing small and mid-size companies (Sept. 13 – The Real Story is Real Yields). As discussed at the time, we had an inkling that this “story” was bubbling to the surface. We discussed how this affects not just the Fed, but also politicians. Many in Congress receive much of their campaign support from local businesses. As it becomes apparent that many small and local banks are in “balance sheet protection mode” (not looking to lend aggressively) and the private credit markets are much more ... (full story)