Total US Credit & Loans – Contraction Reaches $1.5 Trillion

total-credit-march-2010

Total private US credit and loans have fallen to $15,374 billion, a total contraction since the peak of now $1,513 billion or 9% of the total volume at the peak in October 2008.

Deflation still seems to be in full swing …

Related Posts:

Total Credit and Loan Contraction Reaches $1 trillion; Volume Down 2.3% From 1 Year Ago

Total credit and loans have now contracted by $1 trillion since their peak in October 2008:

total-credit-September-2009-2

Total credit and loans have now contracted by 2.3% fro 1 year ago:

total-credit-annual-growth-september-2009-2

Credit and loans are contracting across the board. Year on year declines now appear to accelerate into extreme and unprecedented territories. These are not numbers from a recovering country, these are numbers from meltdownland.

Related Posts:

Annual Total US Credit and Loan Growth Turns Negative

Total US Credit and Loans have now contracted by $979 billion since their peak in October 2008:

total-credit-September-2009

The annual growth rate has turned negative for the first time since beginning of the the weekly recordings, and and as far as I could find now posts the biggest annual decline since the great depression:

total-credit-annual-growth-september-2009

Keep in mind that all this has happened in spite of an environment of renewed optimism and confidence that the economy will bounce back hard.

The biggest surprises and catastrophes always occur when public opinion is completely out of whack with reality. Now is such a situation. How much longer it will last no one knows. But rest assured that a double dip is on the horizon…

Related Posts:

US Total Credit & Loans – August 2009

The sum of total credit and loans in the US has now contracted to $16 trillion by the end of August. It has contacted by $816 billion since its peak in October 2008:

total-credit-august-2009

Annual credit & loan growth has now slowed down to a record low of 0.5% since inception of measuring the data:

total-credit-annual-growth

Denninger recently had some interesting comments on the credit situation, surging charge off rates, etc. He brings in correlation debt vs. incomes which are obviously needed to service this debt.

Here is his video:

All is by and large in line with what I already wrote in Total US Credit and Loans – How Much Contraction Since Peak?.

The most important conclusion out of this is: In 2000 the Fed managed to blow up another bubble to postpone the correction that was necessary then. A housing bubble ensued. In 2007 we got our payback with a much more severe and painful correction. Now they are obviously trying it again. If they were to succeed with a temporary recovery and create some other kind of bubble (which right now I don’t see anywhere), I would indeed not rule out complete and utter disaster when the inevitable correction of that bubble ensues.

Related Posts: