October Consumer Credit Rises By $14.2 Billion, Government Funds 70 Cents Of Every Dollar

Tyler Durden's picture


A month after consumer credit rose by $12 billion (revised) driven by car and student loans, even as revolving credit declined, total consumer credit in October once again rose in both revolving and non-revolving categories, up by $14.2 billion, consisting of $3.4 billion in revolving and $10.8 billion in non-revolving. This number will probably get revised lower next week. The number which will not be revised lower is the composition of sources of consumer credit, where the Government sourced 70% of all new loans (on a NSA) basis: $7 bilion of a total of $10.3 billion. For some perspective, the US government has funded $114 billion of the total $156 billion in total consumer debt in the past year.

Between the Fed and Uncle Sam, who needs banks?

Monthly consumer credit:

Sources of Consumer Credit:

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Fri, 12/07/2012 - 16:34 | 3043780 Bindar Dundat
Bindar Dundat's picture

And I haven't done my Christmas shopping yet!


Fri, 12/07/2012 - 17:58 | 3044063 CPL
CPL's picture

Well, since the real title should be:


.30 cents backs every .70 printed debt...just wait.  Xmas comes earlier this year!

Fri, 12/07/2012 - 16:38 | 3043791 DavidC
DavidC's picture

Maybe this has something to do with people having to put stuff on credit to be able to afford basics?

Why do I feel a crash coming on?


Fri, 12/07/2012 - 16:40 | 3043802 Bastiat
Bastiat's picture

What does it mean that the US Government "funded" 70% of consumer credit?  How? 

Fri, 12/07/2012 - 16:43 | 3043825 inkarri9
inkarri9's picture

Gov't guaranteed student loans.

Fri, 12/07/2012 - 16:51 | 3043854 Bastiat
Bastiat's picture

Seem unbelievable to me . . . but so much does these days.

Fri, 12/07/2012 - 17:17 | 3043942 TruthInSunshine
TruthInSunshine's picture

---->  Debt

---->  Death


Vote for what is worse.


Uncle Sugar passing out the debt like it's candy, bitchez!

It's all good!

Sun, 12/09/2012 - 10:21 | 3046716 WhiteNight123129
WhiteNight123129's picture

Truth in Sun Shine, what is worse is give up and surrender, that is what the Gov wants, death is surrender, debt is surrender.


Fri, 12/07/2012 - 17:40 | 3044007 ajax
ajax's picture



Between the Fed and Uncle Sam, who needs banks?  Silly question. 

The banks need banks is the simple answer.

Fri, 12/07/2012 - 16:41 | 3043809 Winston Churchill
Winston Churchill's picture

Not to worry.

Zimbabwe Ben will buy it all.

What could not possibly go wrong ?

Fri, 12/07/2012 - 16:45 | 3043828 LongSoupLine
LongSoupLine's picture



I haven't seen one penny of that fucking 70 cents on the dollar.  Guess that makes me unAmerican by modern standards...


Fucking great, I'm doing something right!

Fri, 12/07/2012 - 17:05 | 3043906 LawsofPhysics
LawsofPhysics's picture

What do you expect with all the corporations sitting on cash or using it to buyback stock and/or keep those high-yield corporate bonds afloat?

When that doesn't work, I am sure they will get a bailout, isn't fascism great?

Sun, 12/09/2012 - 10:23 | 3046722 WhiteNight123129
WhiteNight123129's picture

This self pumping must stop. Each of those corporations think individually that they are smart. On an aggregate basis the lack of investment is very inflationary, it would turn US into Brazil which fails to invest and has chronic inflation and bad governance.


Fri, 12/07/2012 - 16:45 | 3043832 bnbdnb
bnbdnb's picture

No worries, tomorrow I'll be a CEO.

Fri, 12/07/2012 - 16:56 | 3043863 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Being a CEO is not the American Dream anymore.

The American Dream is winning the lottery.

Fri, 12/07/2012 - 17:44 | 3044023 azzhatter
azzhatter's picture

An obamaphone

Fri, 12/07/2012 - 16:51 | 3043851 Yen Cross
Yen Cross's picture

 There is sooo much monetary[Fed.] skew in every macro report. We should start a new economic P.H.D. curriculum called,

  { Quantum /Phantom } Economics...   Chair Satan & Timmah can write the text books... Krugman can be their lead contributor/

Fri, 12/07/2012 - 16:55 | 3043871 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He already writes the textbooks for it:

Macroeconomics (6th Edition) by Ben S. Bernanke -


Fri, 12/07/2012 - 17:08 | 3043913 brak
brak's picture

looks awfully thick... you'd think "Ctrl+p" would've taken a page or two at most

Fri, 12/07/2012 - 17:03 | 3043901 Eally Ucked
Eally Ucked's picture

Finally good question "who needs banks?". If they loose we pay if they win CEO's and other skimmers take it, so why not to use profits from them in good times to cover whatever needs gov has.

Fri, 12/07/2012 - 17:45 | 3044024 ajax
ajax's picture



I imagine you mean to say : if they lose ...



Fri, 12/07/2012 - 17:04 | 3043904 Yen Cross
Yen Cross's picture

 Tyler are those 2 huge spikes down in July area {2011 and 2012} just first half end anomalies?   Ref;Top chart

Fri, 12/07/2012 - 17:23 | 3043966 monopoly
monopoly's picture

Will this ever end?


Fri, 12/07/2012 - 17:41 | 3043993 LouisDega
LouisDega's picture


Fri, 12/07/2012 - 17:42 | 3044008 q99x2
q99x2's picture

The FED has to keep the flow going so the GDP stays above 1.5% because if there is a slightly sustained negative number the whole thing blows up. Being a student in need of a new car I can't complain. They probably believe they have some time because European cities are just begining to be secured and segrated from the general population as in the City of London and Amsterdam. I heard they have a few in Central and South America as well. So it will be a while.

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