U.S. Consumer Credit Fell by a Record $21.6 Billion in July

Stayfree | September 8, 2009 | Stayfree

[Stayfree]

Article published on Bloomberg.com(restrictions apply to quotation or copying). Here is link to article!

U.S. consumer credit plunged $21.6 billion for July, which was 5 times projected by economists, and is a 10% drop in total credit. June credit plunge had originally been projected at $10.3 billion and was revised to $15.5 billion. Banks are restricting lending terms and job losses make Americans reluctant to borrow.

WHOA!

This HUGE contraction of credit is getting worse, not better as the liars in Washington have been saying.

[cvq3842]

Yes, banks are slashing lines of credit wherever they can.

Should be good in the long run in many ways, but painful now.

[Stayfree]

Link s/b http://www.bloomberg.com/apps/news?pid=20601103&sid=anUy8clF_AVk Try again: Link

[KarlInOhio]

and is a 10% drop in total credit.

Actually it is a 10% annualized rate, so a little less than 1% for the month. Still, that is huge.

[Alberta's Child]

Right. I see this as great news.

[Wyatt's Torch]

This slash in credit increases the demand for money...which is why the Fed's current "printing" is not inflationary. (normal caveat, if the money supply stays high after velocity - i.e. demand - returns to normal levels then it will be inflationary). Right now there remains an incredible demand for cash that is being met.

[angkor]

Isn’t it a good thing that consumers are reducing debt?

[angkor]

Ditto, I say it’s good news, not alarming news.

[Psycho_Bunny]

It’s OK because it was “unexpected”

[perez24]

It’s only good unless it’s bad.

In other words, whatever you do is wrong according to economists.

[TexasFreeper2009]

I have a nearly 800 credit rating (amazing) and even I had two of my credit cards I dont use very much canceled earlier this year.

I can't imagine what people with poor credit must be experiencing

[fso301]

When as a nation we borrow more than we take in, evidence that the levels of borrowing are reducing can be taken over the long term as a good sign. Painful adjustments at present but potentially positive long term.

[The Magical Mischief Tour]

Were not experiencing anything really, we can’t get anything...

[LibLieSlayer]

But hussein said today that we are in recovery and his stimulus has America rocking like never before... $100.00 bills are floating in the wind... I saw a Unicorn and Jessica Alba wants my body!

LLS

[muawiyah]

10% per month ~ that’s runaway deflation!

[FromLori]

http://market-ticker.denninger.net/archives/1417-FLASH-Consumer-Credit-RECORD-Contraction.html

[wally_bert]

I kept my overdraft protection paid off and just had it cancelled.

[usshadley]

well as long as the poor lil’ fellows at Goldman Sachs are getting three squares a day I can rest easy. Bless those hard-working honest patriots.

gag gag gag-—puke!

[Orange1998]

This economy was built on credit. It looks like we are heading to days of our grandparents.... reusing everything and pinch pennies.