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US consumer credit falls $3.6 bln

By   || September 8, 2010 at 19:03 GMT
|| 8 comments || Add comment

US consumer credit fell for a sixth straight month in July. Revolving debt (like credit cards) fell $4.4 bln while non-revolving debt like student and car loans rose $0.75 bln.

Consumers remain cautious, the data would suggest, a short-term drag on the economy but a long-term plus as personal balance sheets are repaired.

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8 Responses to “US consumer credit falls $3.6 bln”

  1. Fluffy Fox on September 8th, 2010 19:23 GMT

    $827.8bn revolving credit has fallen below the 2005 figure ($829.6bn).

  2. Jamie Coleman on September 8th, 2010 19:26 GMT

    Frugal Americans…

  3. Fluffy Fox on September 8th, 2010 19:32 GMT

    More here:- “Cardholders Prefer Debit as Credit-Card Use Falls” http://www.bloomberg.com/news/2010-09-08/cardholders-prefer-debit-as-credit-card-use-falls-javelin-says.html
    It might be good for personal balance sheets but bad it surely is for demand.

  4. Jeff on September 8th, 2010 19:45 GMT

    Here’s a very interesting piece on debt and how it affects GDP. It becomes more onerous with deleveraging ( sp).

    http://www.debtdeflation.com/blogs/wp-content/uploads/2010/08/WhatBernankeDoesntUnderstandAboutDeflation.pdf

  5. Fluffy Fox on September 8th, 2010 19:50 GMT

    Great find Jeff. Gripping stuff! :)

  6. James on September 8th, 2010 19:52 GMT

    @Fluffy, I like to look at it as more realistic demand. People will now only buy what they have cash for. Which will also lead to increased savings as well.

    This is encouraging long term news.

  7. ForexLive US wrap-up: Morning risk rally fades | ForexLive on September 8th, 2010 20:23 GMT

    [...] consumer credit falls $3.6 bln in July; sixth straight monthly [...]

  8. Jeff on September 8th, 2010 20:26 GMT

    Here’s a demographics interview with Dent which will play into the deleveraging cycle and demand.

    http://seekingalpha.com/article/223886-harry-dent-s-outlook-on-demographics-debt-and-deflation?source=article_sb_picks

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