Consumer Credit: Yuck
Courtesy of Karl Denninger at The Market Ticker
There’s nothing here that I like:
Consumer credit increased at an annual rate of 1/2 percent in April 2010. Revolving credit decreased at an annual rate of 12 percent, and nonrevolving credit increased at an annual rate of 7 percent.
Yeah yeah.
In dollars, non-revolving loans went from $1.5925 trillion to $1.602 trillion, an increase of $10 billion. But revolving (credit card) debt decreased $8 billion from $846.5 to $838.
The previous values were revised (negatively) as well.
To put this in chart terms in percentages:
Yeah, ok, the rate of change has leveled out in the credit card space and turned up a tiny bit in the non-revolving. But in dollars it looks like this:
Nice little hook there eh?
The consumer continues to say "screw that!" on more spending – especially spending that goes on plastic.
Believe whatever you want about the magic market pumpers, the numbers do not lie, and it appears the stock market is figuring it out too, with RTH (Retail Holders) down to just under 93 from $108 just a couple of months ago, a loss of 14%.
"Here it comes!"
