Tuesday, September 8, 2009

HUGE contraction in consumer credit

AlphaNinja - Not just a huge contraction, but a much bigger contraction than was expected. Note that these are not August but July numbers.

--July Consumer Credit was down $21.6billion year over year versus an expectation of down only $4billion.
--June was revised down to -$15.5billion from -$10.3billion

Sure it's good news for the consumer to pay down his/her debt and increase the savings rate, but with the consumer responsible for nearly 70% of this country's GDP, it will be felt in a big way. The market is selling off on the news, but not in a major way.

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