More Evidence that the secular deleveraging of American consumer debt is well under way. I get the feeling that the Stock Market and Wall Street is still thinking that consumer spending is around the corner.
Outstanding consumer debt fell at a 7.2% annual rate in September, the eighth consecutive decline. Consumer credit fell by $14.8B to $2.46T in September, down 4.7% compared with a year ago. So what we have is less consumer debt and less debt extended to consumers.
This decline in September was led by another huge drop in revolving debt, such as credit cards, which fell $9.9B to $889B, or a 13.3% annual rate.
Non revolving debt such as auto loans, student loans and other personal loans fell $4.9B to $1.57T, or a 3.7% annual rate.
We are in the midst of a huge credit cycle change.
http://tradersutra.blogspot.com/2009/04/fatal-flaws-and-credit-cycle.html
http://tradersutra.blogspot.com/2009/09/bank-credit-m3-money-supply-keeps.html
http://tradersutra.blogspot.com/2009/09/what-planet-are-you-from.html
Yet the government is not listening as they continue to stuff "cash for clunkers" down our throats. They want consumers to buy homes that they cant afford, and give them tax credits to do so.
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