We might as well put on every post, Americans are flat busted!
The Federal Reserve released today the consumer credit numbers.
Consumer credit decreased at an annual rate of 5-1/4 percent in the second quarter.
Revolving credit decreased at an annual rate of 8-1/4 percent, and nonrevolving credit decreased at an annual rate of 3-1/2 percent. In June, consumer credit decreased at an annual rate of 5 percent.
At least Bloomberg is finally getting it's about the jobs man:
A jobless rate near the highest in 26 years, stagnant wages and falling home values mean consumer spending, about 70 percent of the economy, will take time to recover even as the recession eases. Incomes fell the most in four years in June as one-time transfer payments from the Obama administration’s stimulus plan dried up, and unemployment is forecast to exceed 10 percent next year before retreating.
Credit card charge offs:
Credit-card defaults climbed to a record in June as more consumers fell behind on payments because of rising unemployment and bankruptcies, according to Fitch Ratings statistics released on July 31. Charge-offs, the cost of loans that card issuers have given up on collecting, rose to 10.79 percent last month, 64 percent higher than the same period last year, the Fitch Prime Credit Card Index showed.
That's an astounding number, over 10% just stop paying on their credit card balances.
Also other loans now have a 4.31% 60 days can't pay which is a slight improvement from last month, of 4.45%. But is it that great of an improvement when even getting a loan has dropped 5%?