January 2014 Consumer Credit: Credit Card Use Up

Written by Steven Hansen Econintersect analysis is that total consumer credit growth decelerated 0.1% month-over-month, and the year-over-year growth is 5.9%. The seasonally adjusted consumer credit headlines are showing a growth of 5.25%. The underlying dynamics are very interesting this month as all the growth can be attributed to student loans – all while student …

Stratfor: New Investment Platforms Raise Questions for China’s Banking System

from Stratfor The growth of large online investment platforms has captured the attention of Chinese authorities in recent months. Non-state enterprises such as Alibaba Group Holding Ltd., which runs the e-commerce website Taobao, and Tencent Holdings Ltd., a social media conglomerate that runs the popular WeChat online messaging program, are an emerging force in China’s …

December 2013 Consumer Credit: Credit Card Use Up

Written by Steven Hansen Econintersect analysis is that total consumer credit growth accelerated 0.1% month-over-month, and the year-over-year growth is 6.2% – up marginally from last month. The seasonally adjusted consumer credit headlines are showing a growth of 4.5% – the headline numbers are extremely noisy. Credit card growth was up in December compared to …

November 2013 Consumer Credit Rate of Growth Slows

Written by Steven Hansen Econintersect analysis is that total consumer credit growth has decelerated 0.1% month-over-month, and the year-over-year growth is 6.1% – down marginally from last month. The seasonally adjusted consumer credit headlines are showing a growth of 4.75% – the headline numbers are extremely noisy. There was significant backward revision to the data, …

Malinvestment and Endogenous Money

So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren’t getting it. Most recently, there have been two themes doing the rounds that bother me: