Consumer borrowing falling sharply

[eppur_se_muova]

U.S. consumer credit falls $14.80 billion in Sept
Fri Nov 6, 2009 3:01pm EST

WASHINGTON (Reuters) - Total U.S. consumer credit dropped by a bigger-than-expected $14.80 billion in September, Federal Reserve data showed on Friday, indicating households prefer to reduce debt and are still reluctant to spend.

September consumer credit outstanding fell at a 7.19 percent annual rate to $2.46 trillion. August's figures were revised to show a $9.86 billion drop, previously reported as a $12 billion fall.

Analysts polled by Reuters had forecast consumer credit dropping by $10.0 billion in September. Consumer credit has now declined for eight consecutive months, the longest downward streak since the series started in 1943, according to the Fed.
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more: http://www.reuters.com/article/GCA-Economy/idUSTRE5A54XN20091106

[Xenotime]

1. This is a bad sign for the economy.

[tyne]

2. But it's a good sign

for a sustainable and healthy economy.

[Yupster]

3. Agree tyne

Less debt doesn't sound like a bad thing to me.

[eppur_se_muova]

4. Living within your means -- a revolutionary idea! ;^) nt

[Warpy]

5. Long term, it's a very healthy sign

Short term, it's going to be a disaster.

Until and unless jobs and wages catch up to the American standard of living, we're going to see that standard falling sharply and retail businesses going under, greatly increasing unemployment and creating a vicious cycle.

The only thing that will break that cycle is government intervention.

[PassingFair]

6. +1

The banks are intentionally CREATING a CREDIT CRISIS
with their usurious rates.

When do the supposed "reforms" kick in?
Certainly AFTER the rates have all been
jacked up beyond BELIEF.