Thursday, October 7, 2010

Consumer Credit Breakdown

Reuters details:

Total consumer credit outstanding declined for the seventh straight month in August as credit card debt continued to fall.

The Federal Reserve said on Thursday total outstanding credit, which covers everything from car loans to credit cards, fell by $3.34 billion after dropping $4.09 billion in July.
Looking a bit longer term, we see how the composition of those debt "holders" has changed.



Commercial banks had to take loans that were hidden off-balance sheet... back (though the combined level of securitized + commercial loans continues to default contract) and the government continues to take on more credit risk (up more than $150 billion over the past three years) in an attempt to stimulate the economy / pump $$ back into banks.

Source: Federal Reserve