Comments on: Consumer Credit Falling Fast http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 19:52:17 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Chart Junkie: Consumer Credit Deflation, Shorts Getting Squeezed, S&P Futures Pivots, MON Misses, and a Chart of the Week | Wall St. Cheat Sheet http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-214522 Chart Junkie: Consumer Credit Deflation, Shorts Getting Squeezed, S&P Futures Pivots, MON Misses, and a Chart of the Week | Wall St. Cheat Sheet Fri, 11 Sep 2009 16:52:24 +0000 http://www.ritholtz.com/blog/?p=37715#comment-214522 [...] This first chart from Michael Panzner shows a very disturbing truth for bulls who are holding their breath. (Source: The Big Picture) [...] [...] This first chart from Michael Panzner shows a very disturbing truth for bulls who are holding their breath. (Source: The Big Picture) [...]

]]> By: DeDude http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213663 DeDude Wed, 09 Sep 2009 21:54:03 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213663 Banks having tightened the lending limits, means that people reach the end of the line and go bankrupt earlier. So instead of going bankrupt after you raked up 40K of credit card debt, you go bankrupt after you raked up 15K. However, as soon as the debt has been resolved in bancrupcy, it is not longer counted as consumer credit. Banks having tightened the lending limits, means that people reach the end of the line and go bankrupt earlier. So instead of going bankrupt after you raked up 40K of credit card debt, you go bankrupt after you raked up 15K. However, as soon as the debt has been resolved in bancrupcy, it is not longer counted as consumer credit.

]]> By: trackerman http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213610 trackerman Wed, 09 Sep 2009 20:27:05 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213610 I am one of those who is seriously deleveraging. But it isn't due to my circumstances, but rather the actions of the banks. I get very peeved when my credit card interest rate is doubled with for no valid reason other than the bank deciding that they need more income. When Capitol One first boosted my rate in early 2009 to double digits, I replaced the card with a new lower rate card and just moved the balance to the new card. But as the wave of increases continued from the other banks (Bank of America, Chase and Citibank), I developed a plan to pay them all off over a 2 year period and maintain my balances near zero. But my plan required flexibility to deal with really aggressive banks. When Discover Card sent me a notice of a second rate increase in less than 9 months (from 6.99% to 15.24%), I really flipped and just took a withdrawal from my 401k and paid off the entire balance. I feel a great relief knowing that in less than 2 years and with a minimal effort I will no longer care what the interest rates are on my credit card. I would wager that there are many people that feel the same way and are just plain tired of banks paying .01% on savings and charging 15-20% on credit. Maybe if all Americans can pay off their credit cards, we can get force banks to return to BANKING instead of LOAN SHARKING! I am one of those who is seriously deleveraging. But it isn’t due to my circumstances, but rather the actions of the banks. I get very peeved when my credit card interest rate is doubled with for no valid reason other than the bank deciding that they need more income.

When Capitol One first boosted my rate in early 2009 to double digits, I replaced the card with a new lower rate card and just moved the balance to the new card. But as the wave of increases continued from the other banks (Bank of America, Chase and Citibank), I developed a plan to pay them all off over a 2 year period and maintain my balances near zero.

But my plan required flexibility to deal with really aggressive banks. When Discover Card sent me a notice of a second rate increase in less than 9 months (from 6.99% to 15.24%), I really flipped and just took a withdrawal from my 401k and paid off the entire balance.

I feel a great relief knowing that in less than 2 years and with a minimal effort I will no longer care what the interest rates are on my credit card. I would wager that there are many people that feel the same way and are just plain tired of banks paying .01% on savings and charging 15-20% on credit. Maybe if all Americans can pay off their credit cards, we can get force banks to return to BANKING instead of LOAN SHARKING!

]]> By: somejerk69 http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213486 somejerk69 Wed, 09 Sep 2009 16:20:55 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213486 Doesn't this number include the reneg's by the credit companies that happen'd about 2 Thursdays ago? ie: I signed up for a Capital one Credit card a year or so back and the said I had to take a 25k limit.. @ +1 over prime. Last month they cut my limit to 10k (which they said was across the board for everyone) and reneg'd on my rate and moved it up to 5.89%... a significant forced reduction in 'credit' which is good on one side (makes it look like people are saving more) but bad on the other when you need to consumer to water those green shoots with consumption... Doesn’t this number include the reneg’s by the credit companies that happen’d about 2 Thursdays ago? ie: I signed up for a Capital one Credit card a year or so back and the said I had to take a 25k limit.. @ +1 over prime. Last month they cut my limit to 10k (which they said was across the board for everyone) and reneg’d on my rate and moved it up to 5.89%… a significant forced reduction in ‘credit’ which is good on one side (makes it look like people are saving more) but bad on the other when you need to consumer to water those green shoots with consumption…

]]> By: Wednesday - Beware the Beige Book Blues | syntech finance blog http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213433 Wednesday - Beware the Beige Book Blues | syntech finance blog Wed, 09 Sep 2009 15:10:20 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213433 [...] see just how well Q3 is really going but y&#101&#115&#116erday’s data on Consumer Credit, which dropped $21.6Bn last mont&#104&#32&#40a 10% annual rate) turned us bearish into yesterda&#121’s [...] [...] see just how well Q3 is really going but y&#101&#115&#116erday’s data on Consumer Credit, which dropped $21.6Bn last mont&#104&#32&#40a 10% annual rate) turned us bearish into yesterda&#121’s [...]

]]> By: Wednesday – Beware the Beige Book Blues http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213373 Wednesday – Beware the Beige Book Blues Wed, 09 Sep 2009 13:14:16 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213373 [...] we’ll see just how well Q3 is really going but yesterday’s data on Consumer Credit, which dropped $21.6Bn last month (a 10% annual rate) turned us bearish into yesterday’s [...] [...] we’ll see just how well Q3 is really going but yesterday’s data on Consumer Credit, which dropped $21.6Bn last month (a 10% annual rate) turned us bearish into yesterday’s [...]

]]> By: torrie-amos http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213315 torrie-amos Wed, 09 Sep 2009 09:04:43 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213315 Troy, if one does not voluntarily change, change is forced upon you, so IMHO, it's an unemployment thing plus folks actually considering costs like interest rate chares, it's cumulative, I'm like you though I don't feel it's draconian. Troy, if one does not voluntarily change, change is forced upon you, so IMHO, it’s an unemployment thing plus folks actually considering costs like interest rate chares, it’s cumulative, I’m like you though I don’t feel it’s draconian.

]]> By: AmenRa http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213293 AmenRa Wed, 09 Sep 2009 05:00:07 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213293 I now see where the market found the ability to go higher. The dollar index turned down on 5/8/09 and started trending down on 5/29/09. It hasn't been able to reverse the trend as of yet. TLB of Dollar Index (weekly): <a href="http://www.charthub.com/images/2009/09/08/US_Dollar_Cash.png" rel="nofollow">http://www.charthub.com/images/2009/09/08/US_Dollar_Cash.png</a> It broke below the 13EMA on 5/8/09 & 233EMA on 5/22/09. Currently it's on the way to making a new low this week. And you think the consumers are retrenching now. Just wait. I now see where the market found the ability to go higher. The dollar index turned down on 5/8/09 and started trending down on 5/29/09. It hasn’t been able to reverse the trend as of yet.

TLB of Dollar Index (weekly):
http://www.charthub.com/images/2009/09/08/US_Dollar_Cash.png

It broke below the 13EMA on 5/8/09 & 233EMA on 5/22/09. Currently it’s on the way to making a new low this week.

And you think the consumers are retrenching now. Just wait.

]]> By: Onlooker from Troy http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213291 Onlooker from Troy Wed, 09 Sep 2009 04:45:35 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213291 Andy You know I've been wondering where we truly are in that shift. Many are understandably skeptical. I'm pretty isolated from much of the pop culture these days (for many reasons, most by choice) so I don't know what the real feel on the streets is, so to speak. My closest personal experience is a SIL who went BK after a lifetime of irresponsible borrowing and consuming. She's finally been reformed by force. Otherwise my family (and my wife's aside from said SIL) is pretty frugal already, so there's not a significant shift there. Are the folks who haven't been directly hit by job loss, foreclosure, etc. really changing their ways? Of course those who've been hit would be; and probably those in close proximity. I've seen it in the media that frugal is the new cool, but I'm never sure how much to trust of what I read. Fad and fashion are so very fickle. Have granite countertops and overpriced stainless steel appliances gone out of vogue? Are new house sizes shrinking to more modest and affordable size? etc. Andy

You know I’ve been wondering where we truly are in that shift. Many are understandably skeptical. I’m pretty isolated from much of the pop culture these days (for many reasons, most by choice) so I don’t know what the real feel on the streets is, so to speak. My closest personal experience is a SIL who went BK after a lifetime of irresponsible borrowing and consuming. She’s finally been reformed by force. Otherwise my family (and my wife’s aside from said SIL) is pretty frugal already, so there’s not a significant shift there.

Are the folks who haven’t been directly hit by job loss, foreclosure, etc. really changing their ways? Of course those who’ve been hit would be; and probably those in close proximity. I’ve seen it in the media that frugal is the new cool, but I’m never sure how much to trust of what I read. Fad and fashion are so very fickle.

Have granite countertops and overpriced stainless steel appliances gone out of vogue? Are new house sizes shrinking to more modest and affordable size? etc.

]]> By: Andy T http://www.ritholtz.com/blog/2009/09/consumer-credit-falling-fast/comment-page-1/#comment-213273 Andy T Wed, 09 Sep 2009 03:52:48 +0000 http://www.ritholtz.com/blog/?p=37715#comment-213273 I think there has been a permanent shift in psychology towards spending. Being frugal and saving is the new "cool" thing to do. Just as the GD changed Americans attitudes towards spending and saving, so to will this time period. It's simply "the way of things..." I think there has been a permanent shift in psychology towards spending. Being frugal and saving is the new “cool” thing to do. Just as the GD changed Americans attitudes towards spending and saving, so to will this time period. It’s simply “the way of things…”

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