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Non-Revolving Credit Rises By $7 Billion As Revolving Credit Dips Yet Again

Tyler Durden's picture


The January G.19 statement is out, and confirms that consumers are buying ever more cars on credit, as if we didn't know this. Non-revolving credit, which is basically comprised of car loans increased by about $7 billion to $1.592 trillion, even as revolving credit continued declining, hitting $864 billion, down from $866 billion. Obviously, the market, which the last time the G.19 was released bounced, regardless that credit then declined by $4 billion is now bouncing again, not really sure why, but just tagging along with the computers. And the computers may very well be right: with the government soon expected to foot all consumer credit card losses in addition to GSE and financial firm toxic asset losses, why not just max it all out, after all mortgage payments are now about 6 months in arrears and nobody from the lender bank gives a rat's ass. Out of sight is out of balance sheet impairments. Credit is back, baby. And not like anyone will ever ask you to repay it.



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Fri, 03/05/2010 - 16:15 | Link to Comment Fritz
Fritz's picture

Credit extended to anyone who can fog a mirror? Sweet...

I've seen that movie.


Fri, 03/05/2010 - 16:25 | Link to Comment Crummy
Crummy's picture

Cool, I'll be able to get that golden torch and pitchfork set I've been eyeing...

Fri, 03/05/2010 - 16:28 | Link to Comment Aductor
Aductor's picture

Austerity in Europe and credit expansion in the US? I wonder who will turn out to be the winner when all is said and done.

Fri, 03/05/2010 - 16:45 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

2009 Carrera w/ PDK + Sport Chrono, $67,500 (20% off sticker).

$5k dwn 1.5% for 60 mos Porsche financing.

No unintended acceleration problems.

Fri, 03/05/2010 - 16:34 | Link to Comment Oso
Oso's picture

"Revolving credit declined by $1.7 bln while nonrevolving credit increased by $6.6 bln. It is still too early to say consumer demand has stabilized from one month of positive growth in consumer credit, but it is very encouraging to see consumers willing to take on more debt. However, the data is a little misleading. Auto financing companies increased the interest rate levels for auto loans from 3.26% to 3.94%. The increase in credit may not be due to more expenditures but from car loans becoming more expensive. Unfortunately, the data is not detailed enough to determine where the credit increase is derived from."

Fri, 03/05/2010 - 17:12 | Link to Comment Anonymous
Fri, 03/05/2010 - 17:15 | Link to Comment Anonymous
Fri, 03/05/2010 - 17:52 | Link to Comment Aductor
Aductor's picture

Why would an increase in interest rates for new car loans affect the total amount of nonrevolving credit? It seems to me that such a conclusion assumes that interest is added to the outstanding loan.

Fri, 03/05/2010 - 16:55 | Link to Comment no cnbc cretin
no cnbc cretin's picture

Great, we're going back to where we came from. We haven't learned anything. More stupidity - it's going to be one hell of a fire!

Fri, 03/05/2010 - 17:18 | Link to Comment malusDiaz
malusDiaz's picture

Remember:  Rome wasn't built in a day, but it sure did Burn in one.

Fri, 03/05/2010 - 17:03 | Link to Comment Anonymous
Fri, 03/05/2010 - 17:15 | Link to Comment pooplagrande
pooplagrande's picture

Dammit! I am so stupid. I thought there were consequences with I always kept credit low and powder dry. Shoulda been all-in on a credit line and livin the american dream with my escalades and mcmansions...seems like the rappers had it right all along!

Fri, 03/05/2010 - 17:40 | Link to Comment Zexe
Zexe's picture

LOL what are you waiting for, go get a credit line and use those money since this fiat money establishment will eventually fall apat anyway.

Sat, 03/06/2010 - 05:15 | Link to Comment jeff montanye
jeff montanye's picture

absolutely.  now you know that you don't have to pay the mortgage and the cars are cheaper.

Fri, 03/05/2010 - 17:21 | Link to Comment Anonymous
Fri, 03/05/2010 - 17:21 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

Peter Atwater at Minyanville:

Just read on a respected website a comment that " Credit is back baby."

But if that were true.

Credit is back only if you believe that seasonally adjusted figures make sense in a secular debt declining world.

The headline - seasonally adjusted- figure this afternoon announced that revolving credit fell by $1.7 billion in January.

The unadjusted -real world - figure shows a drop of $18.1 billion - a tenfold difference!

Sat, 03/06/2010 - 15:46 | Link to Comment gmak
gmak's picture

Thank you.


The people who flock to this site seem too quick to embrace the conclusions drawn from SAAR numbers. The only thing that matters is the raw notional YoY change. There is where the conclusions can come from.

Fri, 03/05/2010 - 17:50 | Link to Comment Anonymous
Fri, 03/05/2010 - 18:22 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

A smartypants on an island once told me that THEY would keep the bulls and bears off-balanced as THEY played for time and went from room to room putting out whatever fires came up...

Truth that.

Fri, 03/05/2010 - 17:50 | Link to Comment Anonymous
Fri, 03/05/2010 - 18:18 | Link to Comment Aductor
Aductor's picture

Actually, looking at non-seasonally adjusted data, credit from commercial banks expanded m/m from 492.9 to 503.2. However, the Federal Government stood for a large part. I'm thinking student loans, given the high unemployment. Haven't found any statistics yet which would confirm that hypothesis.

Fri, 03/05/2010 - 18:20 | Link to Comment mynhair
mynhair's picture

Parabolic blowoff on the news.

Hope y'all shorted it.


Thought we got rid of those bogus CAPTCHA ?s.?

Fri, 03/05/2010 - 19:22 | Link to Comment Anonymous
Fri, 04/16/2010 - 08:39 | Link to Comment mark456
mark456's picture

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