Record Plunge in U.S. Consumer Credit Signals Weakened SpendingDo not misunderstand me: I do not say that Amaguedon is for tomorrow, but that equity markets went ahead of themselves and will need to adapt to the reality of the economy.
Sept. 9 (Bloomberg) -- A record $21.6 billion drop in borrowing by Americans added to evidence that consumer spending will be slow to recover as banks and credit-card companies tighten lending standards and households pay down debt.
Consumer credit fell by 10 percent at an annual rate in July to $2.5 trillion, according to a Federal Reserve report released yesterday in Washington. The drop was more than five times larger than economists forecast. Credit fell for a sixth month, the longest series of declines since 1991.
U.S. Consumer Credit Falls by a Record $21.6 Billion (Update2)
Record Plunge in U.S. Consumer Credit Signals Weakened Spending
The Conference Board
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