Tuesday, March 9, 2010

More on Consumer Credit

Yesterday I asked if the consumer was relevering?

While the latest consumer credit balance did tick up slightly, even in the face of declining disposable personal income (ex transfer payments) the overall path barely left its downward trend and remains well above the "normal" 20% level.

Source: Federal Reserve / BEA


  1. I don't think so. While I hesitate to join side of an issue with him even Cramer thinks people are walking away from other debt obligations ie mortgages thus freeing up capital for consumer discretionary.

  2. Probably not since the banks are not freeing up credit and are reducing credit available in most cases...