Posted on 11/06/2009 2:54:23 PM PST by blam
Consumer Credit: Awful
Friday, November 6, 2009
Posted by Karl Denninger
Where are my green shoots?
Consumer credit decreased at an annual rate of 6 percent in the third quarter of 2009. Revolving credit decreased at an annual rate of 10 percent, and nonrevolving credit decreased at an annual rate of 3-3/4 percent. In September, consumer credit decreased at an annual rate of 7-1/4 percent.
Yuck.
Here's the graphical representation.
Nothing good in here. The non-revolving flattened out some in September (gee, you think "cash for clunkers" might have influenced August and September?) but revolving credit - that is, credit cards - continues its base jump without any appreciable change in slope.
Here's the longer-term view:
[snip]
Not to worry. All that hope and change will take care of it. /sarc
I can’t tell you how many people I know that are just scraping by ,,, credit card payments? RIGHT! ,,, they’re worried about food and lights.
Banks booking revenue streams from people who are borrowing too much money isn't an "economy", and if it stops, that's good.
Haven’t been to the Ticker site for days. I like my computer and don’t want to throw it.
This just shows that the consumer continues to de-lever.
It also shows that unless we get a sustained increase in wages earned, that the consumer will not be leading the way back out of the recession. If people aren’t making more wages, and they’re not increasing their use of credit, where is any organic increase in consumption-led GDP increase going to come from?
My credit card bumped their interest rate from around 3% up to 11% a few months ago. Others raised it even more. I immediately paid off my balance and I’m not using it anymore. Why would anyone?
Is the "rate" the rate of growth of credit balances?
Looks like credit is contracting again...quick, we need another stimulus to oil the economy! /sarc
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.