Political Crossfire Forums

[beachbum bob]

US consumers cut big ticket purchasing...cars, boats, etc....non-creditcard purchasing drops like an anchor...slowing of US economy..bursting of US RE markets will have profound effects...and its happening around the world





http://www.marketwatch.com/news/story/story.aspx?siteid=mktw&guid=%7BD7A2B82D-2236-4771-A384-9520E6EFC61C%7D
U.S. consumer credit down by most since April 1992
Most of decline in loans for automobiles and other nonrevolving credit
By Robert Schroeder, MarketWatch
Last Update: 3:23 PM ET Nov 7, 2006


WASHINGTON (MarketWatch) -- U.S. consumer credit outstanding fell by the biggest amount since April 1992 in September as households took out fewer loans for items like automobiles and boats, the Federal Reserve said Tuesday.
Total consumer credit fell by $1.20 billion in September, or by a seasonally adjusted annual rate of 0.61%, to $2.366 trillion, the Fed said.
In April 1992, outstanding consumer credit fell by $1.78 billion, according to the Fed.
The decline was unexpected. Wall Street economists surveyed by MarketWatch were expecting consumer credit to grow by $5.4 billion in September. See Economic Calendar.
Most of the decline was in so-called nonrevolving credit, like loans for cars and boats. Nonrevolving credit fell by $4.05 billion, or by a seasonally adjusted annual rate of 3.21%, to $1.50 billion.
The drop in nonrevolving credit is the largest since October 1991, when it fell by $4.81 billion.

[RueTheDay]

I don't think this is an end of the world type scenario, but I'm starting to think that a recession in mid to late 2007 is becoming extremely likely.

[Charlie Man]

A shift from debt spending to real spending is going to hurt for a bit, but I think it's for the best.

Less total credit is good in my mind, not bad.

[gavnook]

Charlie Man wrote: A shift from debt spending to real spending is going to hurt for a bit, but I think it's for the best.

Less total credit is good in my mind, not bad.
Agreed.

[beachbum bob]

RueTheDay wrote: I don't think this is an end of the world type scenario, but I'm starting to think that a recession in mid to late 2007 is becoming extremely likely.

may not be a scenario as bad as that...but it can be pretty painful because of american fiscal policies both national and personal

the feelgood today and worry about paying for it later mentality has finally caught up to America and the piper needs payment

[cap'n queasy]

All it means is that people are saving instead of spending because times are uncertain.

They should be saving more anyway. So it's a good thing.