September Consumer Credit Lower By $14.8 Billion, Worse Than ($10) Billion Estimate; Consumers Refuse To Borrow
Total consumer credit has dropped for the 8th straight month as consumers refuse to buy stocks while maxing out their credit cards, contrary to what GE, Bernstein and Bernanke want them to do. 4 more months and the US consumer will have given the administration the reflation finger for one straight year. Excess reserves to hit $2 trillion shortly.
Total credit came in at $2.456 trillion, consisting of $889 billion ($10 billion lower than August) and $1,5667billion ($5 billion lower than August). The later category is primarily related to auto purchases thus so much for the Cash for Clunkers attempt at releveraging.