Nonrevolving consumer credit outstanding at record high

By Peter Boockvar - February 7th, 2011, 4:24PM

For the 1st time since Sept ’08, the level of revolving credit outstanding (mostly credit card debt) in Dec went up m/o/m, higher by $2.3b seasonally adjusted to $800.5b and remains well below the record high back in July ’08 at $974b. However, for a 5th straight month, the level of nonrevolving credit outstanding (mostly auto and consumer loans) rose to $1.61T, a new record high, exceeding the previous July ’08 high. This new record level of nonrevolving debt outstanding comes even though auto sales at 12.54mm annualized in Jan remains well below the 16-17mm trend seen from ’03 thru ’07.

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Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Nonrevolving consumer credit outstanding at record high”

Nuggz Says:
February 7th, 2011 at 5:17 pm
No one spends like Americans and autos are soooo very passé.

There is an entire generation that could care-a-less about owning a car.
How the Common Man Sees It Says:
February 8th, 2011 at 1:23 am
Just when you begin to believe that people will start getting their houses in order…….*sigh*
CheeseburgerBob Says:
February 8th, 2011 at 6:54 am
Found this interesting when I heard in on the radio, even more so wrapped in the commentary that “consumers are more confident”. Bunk I say.

Consumers are struggling with debt and not “more confident”, nor are they ready to “go out and shop”. The consumers closest to the edge have already been pushed or jumped into default. The lower and middle “middle class” is racking up debt, refinancing and scrambling in any way they can to stay above water. This use of credit is not discretionary, or you would see car sales rising, retail sales rising (on non essentials like clothing, jewelry, etc,…), leisure travel spending rising, etc,… The top 5-10% and/or most stable households have already been able to take advantage of the lowest rates around. The bottom tier were hanging by a thread to begin with and are always the first to feel a recession.

Just like the stock market is a good indicator of the economic health of a country (no more and not that good in the past, really). Economies outside the U.S. account for around half of Fortune 500 companies operations or earnings.