Friday, March 6, 2009

Positive News Alert! Consumer Credit Rebound

I'll take whatever "non-bad" news I can get...



Source: Federal Reserve

Posted by Jake at 12:16 PM
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5 comments:

  1. RandomFundamentalistMarch 6, 2009 at 1:03 PM

    Isn't part of the reason we are in this mess the over-leveraging of the consumer balance sheet? More importantly, how much of that increase in credit is due to more people resorting to credit cards to pay for the essentials?

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  2. JakeMarch 6, 2009 at 1:14 PM

    there are always two sides to any story, but it has to be at least welcoming that credit (regardless of method) increased.

    i agree that overleveraging is what got us here. the tricky part is to slowly reduce this leverage relative to income and production vs. the absolute cliff diving we've seen. in the short-term, we need credit to be stabilized or else the economy (based on too much credit) will cease creating havoc of unimaginable consequence...

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  3. AnonymousMarch 6, 2009 at 1:15 PM

    I'm still waiting for the 2 Credit Companies companies to take a targeting beating.

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  4. RandomFundamentalistMarch 6, 2009 at 2:43 PM

    I agree Jake that it is encouraging to see that credit is at least expanding somewhat. My concern still remains that the reason it is expanding is because people don't have any other instrument to turn to. The house is tapped out, they have lost their jobs, and haven't saved anything in years.

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  5. JakeMarch 6, 2009 at 4:58 PM

    that might explain the revolving (i.e. credit cards "revolve"), but non-revolving grew as well. as they say though, one month does not make a trend...

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