Consumer Credit Decreases Again in 3rd Q

Here is the full Fed Reserve Release G.19.  Remember, these consumer credit numbers don't include mortgages.  The Great De-Leveraging continues on a seasonally adjusted and non-seasonally adjusted basis.

Consumer credit decreased at an annual rate of 6 percent in the third quarter of 2009. Revolving credit decreased at an annual rate of 10 percent, and nonrevolving credit decreased at an annual rate of 3-3/4 percent. In September, consumer credit decreased at an annual rate of 7-1/4 percent.

This is surprising because I thought Cash for Clunkers would increase non-revolving credit.  But the level are still high.  How long will this continue? 

Here are the tables:



Here are the not seasonally numbers.


Bloomberg is calling this the longest series of declines on record.  Check this quote:

Consumers are ratcheting back their purchases of goods and services made with credit cards as mounting job losses have made them very cautious about what the future holds,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, before the report.

Jobs. Jobs. Jobs.


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I can't read those tables

There are a lot of ways to display tables on EP to make them readable. But I checked your images and the originals are too small to make out the details.

You can create images which are much larger and use the zoom code (in the admin forum) to enable a "click and enlarge". The width of the blog column is 525 pixels on the default theme.

Another way to do it is switch to the rich text editor and copy a HTML based table into your code and then reformat.

Or another way is just to repost a column that is of interest or plain add as an attachment the entire original report if it's in PDF format (or excel for that matter).

I've got a story. I have a credit card from Wells Fargo that I never use and have been meaning to close. As far as I know my FICO score is "great credit" rating, yet they raised the rate to 22.5% and this is a card which has zero balance. In fact I pay off my cards entirely monthly, so that's pretty incredible. Obviously I'm going to dump off Wells Fargo completely and get a credit union card. I worked on dumping off Chase first.

I an just imagine what kind of screw job they are giving to people with balances who also lost their job!

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Credit cards are the biggest legalized scam going

Ok maybe not as bad as payday lenders but pretty darn close. I've been hearing that banks are pulling the trigger very quickly if a person is late with a payment. The whole system is rigged. If you cancel your credit cards that can actually work against you - that's insane or get this if credit card company lowers your unused credit line (because you are a good customer) that can have a negative impact on credit score.

And now BofA and Citi are charging annual fees to punish those who pay off their balances each month. - Financial Information for the Rest of Us.

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And they do it with our money!

Banksters borrow from the Fed (virtually free money), create more money (free!) and lend it to us to buy stuff at rates that make sense only to guys like John Gotti. We don't have the guts to restore usury ceilings, so they keep lending to those who either don't think about tomorrow or think they have no choice. We make deposits at virtually no interest and they lend it back to us at high rates. And the Fed keeps feeding Moral Hazard with our money and "Full faith and credit."
Frank T.

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Frank T.