Consumer Credit in June 2010 – Contraction Continues

posted by Nima

August 6, 2010 · Posted in General Economics 

Consumer credit

Since the peak that I called in December 08, consumer credit has now contracted and Americans have reduced their consumer credit balances by a total of $160 billion or $1,400 per household. That just goes to show you: It still is a loooong way down from Peak Credit and there is nothing that will stop this contraction.

Attitudes have changed a while back already. Only few people understood it. Now more and more are waking up to it. A general fatigue has set in as people realize that the government’s attempts to stimulate us out of this trough have done nothing to bring about a recovery, nothing to get people back to work, nothing to get us out of debt, and in fact everything to prolong the agony, keep unemployment high for years and years to come, and get us in more debt than ever before.

This, my friends, is The End of Consumerism in action and nothing will stop it.

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Comments

2 Responses to “Consumer Credit in June 2010 – Contraction Continues”

  1. scott t on August 6th, 2010 11:21 pm

    Americans have reduced their consumer credit balances by a total of $160 billion or $1,400 per household…..

    are the dollars that are paid into reducing consumer credit going back to the originating banks?

    with less dollars paying into credit accounts is the money then going directly into consumer goods purchases or other areas???

  2. Nima on August 7th, 2010 5:41 pm

    Yes, the money is paid back to the originating banks and with that their portfolio of credit owed by consumers declines.

    That money literally vanishes out of circulation. So it doesn’t go anywhere after that.

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