Posted on 03/07/2013 2:38:01 PM PST by whitedog57
According to The Federal Reserve today, consumer credit rose by $16.2 billion in January, higher than the expected increase of $14.7 billion.
So, it appears that lenders are easy their credit standards, right? Not so fast. Depository institutions suffered a DECLINE of 168.7 BILLION in January. But the Federal government saw an INCR
EASE in consumer credit of $310.8 billion (mostly student loans).
Revolving credit (aka, credit cards) saw a decline in the flow of $233.4 billion. Nonrevolving credit ( automobile loans and all other loans not included in revolving credit, such as loans for mobile homes, education, boats, trailers, or vacations) increased by $351 billion, of which 88.6% was from the Federal government.
So, we continue to rely on (subprime) student loans and auto loans for our “Credit Recovery.” Despite the fact that student loans are now officially the worst performing credit product.
How is that Central Planning working out for you?
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