Consumer Credit Decline Continues

Consumer credit fell again in September actually picking up pace from the August decline. The total decline was 7.2% year over with revolving credit increasing its decline to 13.3%. De-leveraging continues as consumers continue to fix their balance sheets. The stock market, of course, could care less.

Comments

[logicalthought:]

>>The stock market, of course, could care less<<...

...until it *does*... Markets are funny that way.

Nov 06 04:33 PM

[Buccephalus:]

How long will it continue?

The Fed subsidizes Banks at the expense of Savers.
The leaches are fed and the Savers/Retirees starve!

I question how long the Fed Civil Servents feel it appropriate to borrow monies from nowhere and RAPE Taxpaxers at the expense of aiding Banks!

Nov 06 04:57 PM

[Raider_Luke:]

I don't get it. What is so wrong about US consumers deleveraging?

This is what they SHOULD be doing. Save more, borrow less, strengthen their balance sheet for the future.

Nov 06 07:41 PM

[E Nuff Sed:]

I notice that consumer credit is roughly at 2006 levels (total available credit in $). The markets are at 2003 level.

Nov 06 09:41 PM

[berated:]

There's absolutely nothing wrong with individuals saving more; in fact, it's highly desirable.

But, any recovery we hope to see is predicated largely on consumers spending like they did in the past (almost 70% of our economy is/was comprised of consumer spending).

This is an oversimplification, but It would appear that we can't have both (save & spend).


On Nov 06 07:41 PM Raider_Luke wrote:

> I don't get it. What is so wrong about US consumers deleveraging?
>
>
> This is what they SHOULD be doing. Save more, borrow less, strengthen
> their balance sheet for the future.

Nov 07 08:08 AM

[john s. gordon:]

berated -

saving:
damned if you do,
damned if you don't.
> jack

Nov 07 09:26 AM

[Gary A:]

What I don't understand is how credit decline can be falling, tax receipts in states can be falling, yet spending remains flat? I would like someone to look into those numbers because they must be manipulated. It doesn't all seem to add up.

Nov 07 12:19 PM