Monday, April 9, 2012
Huge slowdown in consumer credit growth
Consumer credit growth experienced its sharpest peak-to-trough contraction in at least four years suggesting that the Oct thru Jan consumption binge that factored into very good economic numbers is over. Commercial bank lending also appears to be stalling out. And of course, government spending is down sharply year-over-year: $400 bln lower versus the same time last year according to the most recent Treasury data.
It's all about money...if the government is cutting back on spending and private credit growth is fading, the economy is toast.