The Role of Credit in the Economy

Danny Cevallos: What banks need is loan growth. He says if you don't have anyone to lend to and your margins are going to get hit, you really can't grow. And so it becomes an ROE story, which is an equity story for these banks; that's historically how they've traded. "I think what is lost on people is, yes, last year was a stock pickers market, right? And I think there's also a bond pickers market," he says.