Consumer credit went up 5B in February
- Thread starter Topspin
- Start date
i get more credit card applications then ever before.. however I have also noticed more controls put in place.. LOL I have one of my banks calling me when im out of town because i spent a few hundred on on shirts and they froze my account in case of fraud.. little over the top of u ask me.. shouldn't have to call and let my bank know im going out of town so make sure not to lock my assets on me.
Socrtease
Verified User
People are crazy about credit. But hey if not how can you spend 1.90 dollars for every 1.00 you make. I have gotten several new apps for credit cards this last month and I throw them away. I tell my kids credit cards are for emergencies ONLY. Otherwise they are bad, they will eat up all your extra money for things that you should only buy if you have the money for it. If not you don't NEED it.
Don't be a shameless liar Top. It's enough you're short.
Growth in Consumer Borrowing Slows
By THE ASSOCIATED PRESS
Filed at 3:54 p.m. ET
WASHINGTON (AP) -- Consumers, battered by a credit crunch and prolonged housing slump, significantly slowed their pace of borrowing in February.
The Federal Reserve reported Monday that consumer borrowing rose at an annual rate of 2.4 percent in February, just half of the 4.9 percent increase in January.
The slowdown reflected much weaker demand for auto loans and other type of non-revolving credit, which rose at a rate of 0.4 percent in February, much lower than the 3.6 percent growth rate in January. Credit card debt rose at a 5.9 percent rate.
Consumers have been moving to put more of their purchases on their credit cards as banks have tightened up on lending standards for home equity loans in response to the deepening credit crisis. The price of homes has fallen sharply in many parts of the country.
The 2.4 percent overall rate of increase was the slowest since debt growth had slowed to a 1 percent rate in December.
The overall increase in credit of $5.16 billion, which was slightly below expectations, pushed total consumer credit to a record $2.539 trillion.
The Fed's measure of consumer borrowing does not include any debt secured by real estate such as mortgages or home equity loans.
The economy has slowed dramatically in recent months under the impact of a slump in housing, a severe credit crisis that hit in August and rising unemployment. The government reported Friday that unemployment jumped to 5.1 percent in March as businesses slashed another 80,000 jobs.
While many economists believe the country has slipped into a recession, the Bush administration says that growth should revive starting this summer when 130 million households start spending their economic stimulus checks.
http://www.nytimes.com/aponline/business/AP-Consumer-Credit.html?_r=1&oref=slogin
Growth in Consumer Borrowing Slows
By THE ASSOCIATED PRESS
Filed at 3:54 p.m. ET
WASHINGTON (AP) -- Consumers, battered by a credit crunch and prolonged housing slump, significantly slowed their pace of borrowing in February.
The Federal Reserve reported Monday that consumer borrowing rose at an annual rate of 2.4 percent in February, just half of the 4.9 percent increase in January.
The slowdown reflected much weaker demand for auto loans and other type of non-revolving credit, which rose at a rate of 0.4 percent in February, much lower than the 3.6 percent growth rate in January. Credit card debt rose at a 5.9 percent rate.
Consumers have been moving to put more of their purchases on their credit cards as banks have tightened up on lending standards for home equity loans in response to the deepening credit crisis. The price of homes has fallen sharply in many parts of the country.
The 2.4 percent overall rate of increase was the slowest since debt growth had slowed to a 1 percent rate in December.
The overall increase in credit of $5.16 billion, which was slightly below expectations, pushed total consumer credit to a record $2.539 trillion.
The Fed's measure of consumer borrowing does not include any debt secured by real estate such as mortgages or home equity loans.
The economy has slowed dramatically in recent months under the impact of a slump in housing, a severe credit crisis that hit in August and rising unemployment. The government reported Friday that unemployment jumped to 5.1 percent in March as businesses slashed another 80,000 jobs.
While many economists believe the country has slipped into a recession, the Bush administration says that growth should revive starting this summer when 130 million households start spending their economic stimulus checks.
http://www.nytimes.com/aponline/business/AP-Consumer-Credit.html?_r=1&oref=slogin
Yeah that's the sort of cherry-picking got us into Iraq. Here's another fact for ya:
"Consumers, battered by a credit crunch and prolonged housing slump, significantly slowed their pace of borrowing in February."
No. It isn't. First it needs to stop growing before it could be considered "drying up".
This is like a river that is 14 ft. over it's banks only going up one more foot instead of 3...
It's still flooding. It wouldn't be considered "drying up" until it was going in the opposite direction.
Socrtease
Verified User
Slowed is not drying up! what part of MORE credit being doled out do you not understand. It does not dry up until it is in the negative. See Damo's flood analogy
Yes they’ve been transferring to their credit cards. Available credit has been drying up for both consumers and businesses. I do not understand the desperate need to deny a fact that economists of all political stripes have been discussing, openly, since about mid-2007? What are you afraid of?
It's threads like these that for one moment, make me hope that the crash can't be avoided by the fed. Who used up half their balance sheet to avoid one in an historic bail out, that some said was illegal, and they had to go back a hundred years to find a law allowing them to do it.
I mean, there really is a part of me that marvels at such dumbness, but then I realize...it's fear.
You do know, don't you?
I mean, there really is a part of me that marvels at such dumbness, but then I realize...it's fear.
You do know, don't you?
You’re all terrified. I finally got it now. I couldn’t figure it out for the longest time.
You’re scared shitless, because you don’t know what you would do if there were a real crash, and each one of you is vaguely, or maybe marginally aware, how close we are. How fast it could happen. Of course top would be the most frightened, he has everything in stocks, the idiot. He’s a paper man.
I understand now. Go ahead.
You’re scared shitless, because you don’t know what you would do if there were a real crash, and each one of you is vaguely, or maybe marginally aware, how close we are. How fast it could happen. Of course top would be the most frightened, he has everything in stocks, the idiot. He’s a paper man.
I understand now. Go ahead.
So it doesn't dry up until something that probably hasn't happened even since the FED began keeping track of these things actually does happen? Surely your bar is a bit too high.
The flood analogy is pretty silly.
Socrtease
Verified User
Personally I don't think the government has any business bailing out anyone, private or corporate. If we let these little corrections occur and some companies fail, there would be less hand wringing later. But the little boy has had his finger in the dike for so long now that it just may burst.