Monday, November 9, 2009
Consumer credit continues falling
The chart is only of recent history but the US has not experienced this since WW II. Unfortunately the rate of decline continues to accelerate.
I would personally feel more confident in this recovery if consumer debt at least stopped cliff diving. Whether credit is falling due to less demand or bank restrictions doesn't matter at this point. Until the consumer starts borrowing any recovery will be very tepid and most likely artificial.