Category Archives: Consumer Credit

Student Loans Continue to Drive Consumer Credit in March 2012

Written by Steven Hansen The Fed’s consumer credit report should have stated that student loans continue to drive the credit economy. Consumer credit increased at an annual rate of 7-3/4 percent in the first quarter. Revolving credit was little changed, … Continue reading

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February 2012 Consumer Credit Growth Unchanged at 4.3%

Written by Steven Hansen I have read over the Fed’s headline statement many times and am loss at correlating it to the data they presented. Consumer credit increased at an annual rate of 4-1/4 percent in February. Revolving credit declined … Continue reading

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Student Debt Likely to Grow to 7.7% of USA Gross Public Debt by 2020

by EconMatters Student loan debt is surging, partly boosted by many who became unemployed during the Great Recession going back to school hoping for a better job prospect.  An analysis by the Federal Reserve Bank of New York (FRBNY) showed … Continue reading

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January 2012 Consumer Credit Expands on the Back of Student Loans

Written by Steven Hansen According to the Federal Reserve, January 2012 consumer credit increased at an annual rate of 8.5%. Revolving credit increased at an annual rate of 4.5%, while nonrevolving credit increased at an annual rate of 14.75%. The … Continue reading

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Consumer Credit Expansion Continues in December

According to the Federal Reserve, December 2011 consumer credit increased at an annual rate of 9.25%. Revolving credit increased at an annual rate of 4.1%, while nonrevolving credit increased at an annual rate of 11.8%. Econintersect spends time on this … Continue reading

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November 2011 Consumer Credit Grows At Fastest Rate Since October 2008

According to the Federal Reserve, November 2011 consumer credit increased at an annual rate of 10.0%. Revolving credit increased at an annual rate of 8.5%, while nonrevolving credit increased at an annual rate of 10.75%. Econintersect spends time on this … Continue reading

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Consumer Credit Grew Slightly October 2011, Mostly Student Loans

According to the Federal Reserve, October 2011 consumer credit increased at an annual rate of 3.75%. Revolving credit increased at an annual rate of 0.5%, while nonrevolving credit increased at an annual rate of 5.25%. Econintersect spends time on this … Continue reading

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September 2011 Consumer Credit Growth Is Due to Student Loans

According to the Federal Reserve, September 2011 consumer credit increased at an annual rate of 3.5%.  Revolving credit decreased at an annual rate of 1.0%, while nonrevolving credit increased at an annual rate of 5.8%. A summary for third quarter … Continue reading

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What Gives With Consumer Credit?

Next week the Federal Reserve will release their G.19 tabulation on consumer credit.  This report covers most credit extended to individuals, excluding loans secured by real estate. We are bombarded daily by words such as “debt crisis”, “debt consolidation”, “banks … Continue reading

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August 2011 Consumer Credit Contracts Due to Student Loans

Student loans this month were over 14% of total credit – and accounted for one-half of consumer credit growth. In some previous months, it has been literally the entire growth of consumer credit. Continue reading

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Consumer Credit Expands At 6% Annual Rate in July 2011

It is clear consumer credit is expanding in this economic cycle. It is interesting it is happening in a period many are claiming we have re-entered a recession. Continue reading

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Consumer Credit Expanded Faster than Economy in June 2011

According to the Federal Reserve, June 2011 consumer credit increased at an annual rate of 4-1/4% in the second quarter. In June, consumer credit increased at an annual rate of 7-3/4%, with revolving credit increasing at a rate of 8% and nonrevolving credit increasing at a rate of 7-1/2%. Both are much higher than GDP growth. Continue reading

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Excluding Student Loans – Consumer Credit Expanding 1% in May 2011

Finally there is real expansion in consumer credit in May 2011. In prior months, there was expansion only in student loans causing the consumer credit data to appear like it was expanding. Continue reading

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Consumer Credit Expanded (or at least did not contract) in April 2011

Econintersect has a “small quibble” with the percentages used in the headline, non-revolving grew at 3.4% YoY while revolving credit declined 4.9%. If student loans are ignored, consumer credit declined 6.2% YoY, but MoM consumer credit was unchanged -0.0%. Continue reading

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Consumer Credit: Healing but Still in Bad Shape

Consumer credit per capita is no longer declining according to the NY Fed in 1Q2011. But consumer credit has a long way to go to get healthy. The most rapidly growing area of credit is for student loans, an area that has come under increasing scrutiny for abuse plus lack of efficiency and effectiveness. Continue reading

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Consumer Credit Increases For First Time Since February 2009

Econintersect has a lot of “buts” but agrees with the Federal Reserve that consumer credit expanded in March 2011. The first “but” is the amount of increase. The second “but” is that without student loans consumer credit would have been down again.

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Bad Education

The Project On Student Debt estimates that the average college senior in 2009 graduated with $24,000 in outstanding loans. Last August, student loans surpassed credit cards as the nation’s single largest source of debt, edging ever closer to $1 trillion. Yet for all the moralizing about American consumer debt by both parties, no one dares call higher education a bad investment. The nearly axiomatic good of a university degree in American society has allowed a higher education bubble to expand to the point of bursting.

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Economic Damage Storm Track of The Great Recession

Guest Author: Ted Kavadas writes at Seeking Alpha and his own blog,  EconomicGreenfield.  A bio is available at a previous article. I find the following 10 charts to be disturbing. These charts would be alarming at any point in the economic … Continue reading

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Retail Sales and Credit Expansion Reports not Real

Shopping center sales and consumer credit numbers are reported to be rising. Careful examination indicates they are both falling in most categories. Only direct student loans are increasing. CMI also finds that the Daily Growth Index which tracks online durable goods sales has fallen back to a six-month low. Continue reading

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Consumer Credit: Government Says Increasing – NOT

Comparing YoY change, consumer credit overall is contracting – however this contraction is trending smaller. One clearly growing area of consumer debt is for education loans from the government. Continue reading

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