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Here Is Who Is Funding Consumer Credit YTD
Earlier today the Fed announced that consumer credit increased by $6 billion in March, $1 billion greater than expectations, with seasonally adjusted revolving credit increasing by $1.9 billion, only the second time it has grown in the past 31 months (as shown below). Non-revolving credit also increased by $4.1 billion, both number to be trumpeted in the mainstream media, as it means that in March US consumers we using the credit cards once again to lever up. Yet two things that will not be discussed is that non-seasonally adjusted credit declined for the third month in a row to $2,407.5, an $8.9 billion drop M/M, following a $16.5 billion drop in February. But probably more importantly, the question of where all this credit comes from is once again perhaps best answered graphically: second chart below. As usual, thank you Uncle Sam... Which simply means that no banks wish to lend yet again. And yes, the government is and continues to be the only major source of credit (primarily for student and car loans).
Monthly change in seasonally adjusted revolving and non-revolving credit:
And total holders (i.e., sources) of consumer credit year to date:
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Once my printing license is approved, I will begin lending based on my physical gold and silver holdings.
Just nationalize the fucking banks and end this nonsense...of course thus beginning a whole other set of fun and games. But nonetheless.
Honestly with all the same crooks in charge, I'm not convinced that would help now. Of course, I was all for Nationalization back in 2008 -- you know, before the biblical looting of the taxpayers.
Kinda like they are already?
you mean the government is bank-owned...
Does it make a difference? They're one and the same. "Nationalising" banks (as stupid an idea as "bailing" them out; they should be allowed to simply fail and restructure, come what may, however politically unsavoury this is to ostriches who cannot face reality) is superfluous. If you like saying the banks "own" the government, fine. It's still the government screwing everyone over in the end, be it through banks or however else. What matters is its coercive apparatus that enables it and anyone who hijacks it to do so.
Hope springs eternal. Of course, it's gonna be tough paying down $150K in student loans on a McHourly wage.
I can't believe this was junked. The entire increase is nearly all due to student loans. The ponzi never stops, pretty sad we've resorted to screwing the youth now...and don't forget, can't BK away student loans kids.
not just the youth, the unemployed went back to school, too.
Now they are spending what they would have paid on their mortgage AND running up the credit card. I 've seen this movie
Mortgage bills can be ignored. " Squatter Rent " is a $50 billion giveaway. Make money sitting on your ass at home ......sign me up. This should boost the PI stats.
http://www.bloomberg.com/news/2011-05-06/-squatter-rent-may-boost-spending-as-u-s-mortgage-holders-bail.html
It's called "Stealth Stimulus" Bitchez!!!!
why would the banks lend? its a losing business. just take money from the Fed and buy stawks. perfect trading records for BAC and JPM in Q1 says it all. they even made money after the japanese EQ....amazing what happens when you have software that ADMITTEDLY is capable of manipulating markets.
It's cool taht commercial banks can make record profits without lending. You know, what banks do.
yes - but insider trading is much more profitable
Not that there is anything wrong with insider trading, other than the government's/MSM's imagination.
Paging Janet T. & Merideth W.
It's simple really, we privatize the gains and share the losses. For fucks sake, last thing I want is to be a creditor to Joe Redneck.
The BIG boys never loose...
http://markettechnicals-jonak.blogspot.com/
Axis bank bitchez!
Doesn't matter how much the government holds, revolving credit increased. Period.
It is not from transfer.
What nonsense you speak. Of course it matters. And the effects will be felt by the dear tax payer when those loans default...or perhaps you can explain to me how the hundreds of thousands of kids racking up six figure debt to attend law school or some shit MBA program are ever going to pay those debts back?
Student loans are non-revolving. Different issue.
As a gesture of goodwill don't go paying down anybody's credit cards out of sympathy for them. They will just use it as an excuse to run up their bill again only this time for better reasons...not. Some lessons are better learnt the hardway.
Great info Tyler. Your artcile begs the question "Why wouldn't they want to lend if they are borrowing at 0 %, and lending at Prime + 5 - 10%?"
I see it as :
Apologies for long post, I gotta get back to the circus. Thanks.
I don't understand how the gubmint is the largest lender for auto loans.
I've only bought 4 new cars off of the lot but have never been offered financing from anything resembling a government entity.
What am not understanding?
WHAT!?!? How do *I* get a US Federale Gummit Visa? Where do I sign up?
No one else will lend me anything, that's for sure.
Look at that first chart! We are exactly right now where we were in July 08 when the collapse began. This is going to be a disaster forthcoming.
If I were a bank, I wouldn't lend the sheeple money either. Hey, let's go lend at a 3 point spread per year, then get villonized by the gubberment when we have to foreclose or....let's hand this over to our little prop desk here and turn it for a point a day. Boy, that's tough math to solve now isn't it.
Until consumers start taking responsibility for their actions, there won't be any velocity to the dollars currently being hoarded by the banks.
"...the government is and continues to be the only major source of credit (primarily for student and car loans)".
Quite.
DavidC