Consumer Credit Drops For 11th Straight Month, Down -1.8 Billion, November Revised $4.3 Billion Lower
January Consumer Credit dropped for the 11th straight month, declining by $1.8 billion in January to $2,456.8 billion from a $4 billion downward revised $2,458.6 billion in November. Revolving credit dropped by $8.5 billion, or an 11.5% annuallized rate, while non-revolving credit (think auto loans) surged by almost $7 billion, a 5.2% annualized increase.The primary source of capital was "pools of securitized assets" whose total increased from $601 billion to $610 billion as most other funding classes declined.
Is January poised for the first positive consumer credit reading in a year?
(4 votes)
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on Fri, 02/05/2010 - 15:35
#219587
http://eclipptv.com/viewVideo.php?video_id=9850
on Fri, 02/05/2010 - 15:41
#219608
I wonder how much of this was writedowns due to bad debt...
on Fri, 02/05/2010 - 15:44
#219626
Just wait till Ben Bukkake stops buying agency paper. That's when the waterfall in credit contraction resumes.
on Fri, 02/05/2010 - 15:50
#219646
You incorrectly assume that Ben will actually stop monetizing debt.
on Fri, 02/05/2010 - 16:17
#219714
BS will not stop, because he already made his choice. In fact, he made it years ago with the flippy "Helicopter" statement that Greenspan and fellows liked so much. Specifiaclly it is not his choise, he made the choice to make the choice of the choosers. They will not stop, because they want to "keep the game going"-Jack Welch and Oliver Sarkozy quote from an interview by Andrew Ross Sorkin last year.
on Fri, 02/05/2010 - 15:58
#219668
Way to go peoples.
on Fri, 02/05/2010 - 16:24
#219739
We're not people, we're sheeple.
on Fri, 02/05/2010 - 15:59
#219674
Credit was the way the system was brought down, and credit will be the way the new system will be appropriated.
on Fri, 02/05/2010 - 16:24
#219737
Been using my credit card as an ice scraper for over a year.
on Fri, 02/05/2010 - 17:33
#219824
Credit is what brought the system down. Debt is what will keep it down.
The 1.9 Trillion USD increase in the debt ceiling reportedly works out to @ $46,000. per man, woman and child.
Bush doubled the National Debt in 8 years--from @5 Trillion to @10 Trillion. Obama has'nt changed anything.
on Fri, 02/05/2010 - 17:48
#219857
This is good. Credit needs to come down a lot. it's part of the real part of the recovery, not sugar pills.
on Fri, 02/05/2010 - 23:49
#220184
While what you're saying is true on the private level, it's not happening on the government level - government debt levels are increasing way faster than private debt levels are declining.
If people thought of the government as a relative with a bad spending habit and an credit card issued in their name, we might just make some progress here.
on Fri, 02/05/2010 - 23:49
#220185
While what you're saying is true on the private level, it's not happening on the government level - government debt levels are increasing way faster than private debt levels are declining.
If people thought of the government as a relative with a bad spending habit and an credit card issued in their name, we might just make some progress here.
on Fri, 02/05/2010 - 18:37
#219941
December credit would go up, thus tempering the credit downdraft, because of the holidays. You would expect credit to resume its downward slump as the banks cancellation of credit lines, exorbitant rates and consumers being tapped out will take its toll. If the recovery of our "economy" hinges on people re-maxing out their cards, after a break, we are in deep doo-doo.
Today's bounce at the end combo of shorts covering and PPT - nothing more. This credit report was not sufficient to buoy hopes of a turnaround.
on Fri, 02/05/2010 - 19:10
#219970
Agree. I think in December people were pretty sick and tired of not spending money they don't have. A holiday bender.
on Fri, 02/05/2010 - 20:05
#220022
I always wonder how much of the drop in credit is due to defaults, writedowns, etc.
In any case this economy is making it real easy to cancel some of the damn credit cards I have, usually those retention folks badger the hell out of you to stay, now I just cry poverty and they are more than happy to let you go. LOL!
on Sat, 02/06/2010 - 14:04
#220574
Poverty indeed.
We wrestled several credit cards to the mat and made em zero balance.
Now we hold the credit cards unable to see interest income. For example... we charge it to buy a widget online and a few moments later, make balance transfer at bank online to pay off the credit card.
Cash is king, until they learn to compound interest by the hour instead of by the day....
mmmm. by the hour? hmmmm hopefully the experience is a clean and enlightening one.