The Lehmann
Letter (SM)
Consumer
credit continues to climb out of its recession trough::
The Fed
reported consumer credit grew by $78.2 billion in April. (This includes credit
cards, auto loans, home-appliance and home-furnishing financing, student loans,
etc., but excludes real-estate financing.) That’s consistent with the progress
evident in the chart.
Consumer
Credit
(Click on
chart to enlarge)
(Recessions
shaded)
Households
had retreated into a protective crouch: Conserving liquid assets, shedding debt
and reducing large, postponable purchases. Now consumers are taking the first
tentative steps out of that crouch. They are doing some borrowing and buying.
If only that
extended to housing………
(To be fully
informed visit http://www.beyourowneconomist.com/)
© 2012
Michael B. Lehmann
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