In the News:
Los Angeles Times

Portfolio Manager Axel Merk discusses the slow thawing of the credit markets in a Los Angeles Times article.
 
"Interbank interest rates continued to inch lower Wednesday, indicating an increased willingness by banks to lend to one another. But worries about the creditworthiness of borrowers in a declining economy may be stifling lending despite the greater availability of funds, said Axel Merk, president of Palo Alto mutual fund company Merk Investments.

'Banks are hoarding cash; they're not making loans,' Merk said, citing Federal Reserve data showing a huge increase in bank reserves. 'If credit is less available, everybody pares down spending, they pare down investments.'"