Friday, January 08, 2010

Consumer Credit Drops Record $17.5 Billion; Steepest Declines Since WWII

While monetarist clowns focus on so-called excess reserves and the huge surge in inflation that is supposed to bring (See Fictional Reserve Lending And The Myth Of Excess Reserves) http://globaleconomicanalysis.blogspot. ... th-of.html I am watching the biggest plunge in consumer credit since WWII.

Please consider Consumer Credit in U.S. Drops Record $17.5 Billion. http://www.bloomberg.com/apps/news?pid= ... JlW8LcoeBU

Consumer credit in the U.S. dropped a record $17.5 billion in November as unemployment close to a 26- year high discouraged borrowing and banks limited access to loans.

The slump in credit to $2.46 trillion was more than anticipated and followed a revised $4.2 billion drop in October, Federal Reserve figures showed today in Washington. The median estimate of economists surveyed by Bloomberg News projected a decrease of $5 billion. The series of 10 straight declines was the longest since record-keeping began in 1943.

“Double-digit unemployment is eroding consumer confidence and the uncertainty is prompting consumers to pay down their credit card debts,â€