Consumer Credit Drops

Good news: consumers are deleveraging
Bad news: consumers are really deleveraging

The Fed's G.19 release indicates a February drop of $7.5 billion in total consumer credit, $4.5 billion more than consensus. The bulk of the monthly change was due to a significant reduction in revolving lines of credit: almost $7.8 billion or nearly a 10% change, while non-revolving credit demonstrated a slight increase.

Judging by the market's secondary knee jerk reaction, an increase in savings is a good thing for the bull rally.