May Consumer Credit: +$17.1B vs. +$8.5B expected and $10.0B prior (revised). The month saw the...


May Consumer Credit: +$17.1B vs. +$8.5B expected and $10.0B prior (revised). The month saw the biggest jump in consumer credit since December. Non-revolving debt (student loans, car and personal loans) up $9.1B, while revolving debt (credit cards) increased $8.0B.
Comments (33)
  • MEKhoury
    , contributor
    Comments (403) | Send Message
     
    Hooray for more debt!
    9 Jul 2012, 03:07 PM Reply Like
  • Stoploss
    , contributor
    Comments (1713) | Send Message
     
    Federal Gov't
    Federal Gov't
    "
    "
    . .
    0

     

    LOLOL!!!
    9 Jul 2012, 03:40 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    I guess we never learned...kind of sad actually....
    9 Jul 2012, 03:08 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11169) | Send Message
     
    More debt?!?!

     

    Americans are stupid and haven't learned one lesson from the crisis.

     

    We need AUSTERITY NOW!!
    9 Jul 2012, 03:08 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    Actually, I am not so sure they/we are stupid. Immoral perhaps, but not stupid. The "GIVErnment" gamed a system that exploits the worst in humans. It told them there were free lunches and then proceeded to take ours,the producers, and give to them, the consumers.
    So it is perfectly rational for a person who can't muster up enough energy to rob you at gun point, will delegate that responsibility to the government to rob you of your labors. It works well, as any Ponzi scheme does, until the 50% of us who are suckers, yes moral, but suckers still, say enough!
    9 Jul 2012, 07:10 PM Reply Like
  • Nate Sterling
    , contributor
    Comments (615) | Send Message
     
    Yes. I am not so sure people are stupid but immoral perhaps. Some people spend spend spend and charge up their credit cards and max out their credit limits and then file bankruptcy every 7 years or so as the law allows. People are rational self-interest maximizers and will often game the system if given a chance. Personally I have never filed bankruptcy and never will but the law is the law and any law however well-intended will sometimes be abused by some people. You will also see that municipalities and governments will also file bankruptcy or strategically default on their debts, or inflate their way out of debt by printing more paper money. In the end one could argue all of this stuff is immoral. People and governments take the easy way of spending on credit until the credit runs out. The financially responsible people (i.e. Germany) are the ones who often have to take the hit for the irresponsibility of the irresponsible people (i.e. Greeks).
    9 Jul 2012, 10:32 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2241) | Send Message
     
    Credit increases 8% .... Wages 0.2%....
    9 Jul 2012, 03:09 PM Reply Like
  • The Enterprising Value Inve...
    , contributor
    Comments (571) | Send Message
     
    I really don't like posting on some of these threads because of all the mis-information (see above) that just permeates the responses.

     

    Your wages # of 0.2% I am assuming is from the MoM that the BLS gives. You are then comparing that to an annualized rate given by the Fed. Nice one.

     

    Additionally, you fail to acknowledge that mortgage debt is by far the largest debt Americans hold, and that value is falling by some 2% YoY.

     

    If you actually standardized the data, looked at it apples to apples and compared that to personal income, you would actually find that Americans are still currently deleveraging from 2007.
    9 Jul 2012, 03:23 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1821) | Send Message
     
    But if you count corporate + personal + government debt, the USA is about 50% worse today than pre-2008. Just as Rogoff et al. say is the historical norm after major financial crashes like we had.
    9 Jul 2012, 04:53 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    Yep...seems like the average American is back spending on credit..hard not to when Obama can't bring jobs
    9 Jul 2012, 03:10 PM Reply Like
  • Topcat
    , contributor
    Comments (579) | Send Message
     
    Obama does make laws...
    9 Jul 2012, 04:11 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    What is credit card interest..17% or something....yeah thats going to work out well....
    9 Jul 2012, 03:13 PM Reply Like
  • salvaaj
    , contributor
    Comments (85) | Send Message
     
    I think that this number can be somewhat skewed. I have 0% interest on my new credit card until December. Thus, there is no point of paying it off completely right now.
    9 Jul 2012, 03:15 PM Reply Like
  • Lint
    , contributor
    Comments (385) | Send Message
     
    The next opportunity for politicians to buy votes.
    9 Jul 2012, 03:15 PM Reply Like
  • Zach Tripp
    , contributor
    Comments (483) | Send Message
     
    is Mastercard a buy off this data?
    9 Jul 2012, 03:18 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    Now that is the way an investor thinks. Play the ball where itlies.
    9 Jul 2012, 07:13 PM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (475) | Send Message
     
    If people can afford to make their payments!
    9 Jul 2012, 11:27 PM Reply Like
  • Jason Tillberg
    , contributor
    Comments (1326) | Send Message
     
    They just had to have that Ipad 3.. couldn't live without it.
    9 Jul 2012, 03:21 PM Reply Like
  • Ben Bernankes friend
    , contributor
    Comments (475) | Send Message
     
    Took the words out of my mouth.
    10 Jul 2012, 12:04 AM Reply Like
  • GaltMachine
    , contributor
    Comments (2069) | Send Message
     
    My mistake I read the chart wrong.
    9 Jul 2012, 03:24 PM Reply Like
  • The Enterprising Value Inve...
    , contributor
    Comments (571) | Send Message
     
    its the MoM change if you annualized it.
    9 Jul 2012, 03:25 PM Reply Like
  • Lint
    , contributor
    Comments (385) | Send Message
     
    just another form of stimulus, eh?
    9 Jul 2012, 03:31 PM Reply Like
  • Jason Tillberg
    , contributor
    Comments (1326) | Send Message
     
    I calculate this is an increase of 5.3% year over year.
    9 Jul 2012, 03:24 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    "Expanding credit levels should in theory be positive for economic growth"

     

    that is the problem..that was the OLD economic growth...all fueled by credit....I do not think that is good growth...it is fake growth...good growth is saving....expanding debt is not good to me
    9 Jul 2012, 03:35 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    Hayek will take Keynes three out of three, 24-7-365 on the cure for the self induced cancer of artifiicially stimulating aggregate demand.
    9 Jul 2012, 07:16 PM Reply Like
  • Kevin Flynn, CFA
    , contributor
    Comments (633) | Send Message
     
    There is perhaps no other number with revisions as large (percentage) as consumer credit - the real data isn't known until after the end of the quarter. Take this number with a large grain of salt. Credit card companies reported falling delinquency rates today, making it possible that the estimate is skewed by old rates. It does not correlate with May personal spending data.
    9 Jul 2012, 03:45 PM Reply Like
  • torahislife
    , contributor
    Comments (400) | Send Message
     
    Not good. Consumer borrowing is neither sign of growth or confidence in stagnant economy. This is borrowing to pay the bills.
    9 Jul 2012, 04:00 PM Reply Like
  • csymalla
    , contributor
    Comments (245) | Send Message
     
    Or it is people taking advantage of cheap money, mortgage refinance and low interest rate credit card offers?
    9 Jul 2012, 04:46 PM Reply Like
  • Pandemonium
    , contributor
    Comments (43) | Send Message
     
    I'm sure the people are being properly taken advantage of.
    9 Jul 2012, 06:28 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    Yes. revisions aside and standardization aside.We are a debt addicted society. We borrow only when we have money, or when we don't, when we have a job or when we don't.
    9 Jul 2012, 07:18 PM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    The difference between an adult and a child is the adult is expected to be able to say no AND accept responsibility for the predictiable outcomes of their own decisionsl
    It;s the advertisers fault we are addicted to credit, it's the credit card companies, the banks, they shoved that plastic money in our pocket and programmed us to use like it didn't have to paid off with fiat currency.
    9 Jul 2012, 07:24 PM Reply Like
  • realornot
    , contributor
    Comments (1263) | Send Message
     
    low interest = more debt = good for economy.

     

    I borrowed more too. very low interest....
    9 Jul 2012, 06:59 PM Reply Like
  • marketdaddy
    , contributor
    Comments (69) | Send Message
     
    Just go with it... I'm going to use up all of my available credit to accumulate an unbearable level of personal debt... to buy items that I can sell for cash (and therefore can't be repossessed). There's no debtor's prison or negative stigma associated with biting off more than I can chew - I'll just slap a couple politicized bumper stickers on my ride and blame the greedy wall street bankers and the 1%'ers. Though I'll sell for much less than what I owe, I'll use the cash to buy triple-leveraged ETF's in hopes that I'll accumulate short-term capital gains. Unfortunately, I'll incur some taxes on those gains but that's just the price of doing business. If my strategy goes sour, I'll again blame wall street and say that the whole game is rigged - that MY money was stolen from high-frequency machine trading and heartless hedge funds. I may be down, but I certainly won't be out. With verifiable, well-documented financial plight, I'll belly-up to the bevy of federal & state governmental "assistance" programs and enroll in the full gamut of well-deserved, hard-earned, God-given, entitlements that I'm guaranteed just because I exist. Keep in mind that any form of assistance I receive that can be exchanged directly or indirectly for cash (less any usury expenses) will be converted into tender so I can take another run at leveraged ETFs or perhaps Lotto tickets. Eventually, I'll come out a winner....but if I don't, it's not because I didn't try. It'd be because the deck was stacked against me; Somebody else's fault! In any case, I'll have "free" healthcare :)
    9 Jul 2012, 07:38 PM Reply Like
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