Consumer credit falls unexpectedly in July

[DA60]

'(Reuters) - Consumer credit fell in July for the first time in nearly a year as Americans reduced credit card debt, a worrisome sign for an economy that has struggled to create jobs.

Consumer credit shrank by $3.28 billion in July, the Federal Reserve said on Monday. That was well below the $9.1 billion advance Wall Street economists had forecast in a Reuters poll.'

Consumer credit falls unexpectedly in July | Reuters


FRB: G.19 Release-- Consumer Credit

 

[DA60]

Interesting.

 

[specklebang]

We're going through a painful transition and in a way, I view this as positive. I've avoided the use of credit all my life and I counsel others to do the same.

Delaying gratification builds character. Less credit card usage is an indicator that we may be maturing just a wee bit.

 

[lizzie]

Delaying gratification builds character. Less credit card usage is an indicator that we may be maturing just a wee bit.

In our society, it indicates that people are too scared to extend themselves- not a good sign, and not a sign of maturity.

 

[specklebang]

I suppose you are right, that it is fear rather than maturity but we can always hope. We better grow up eventually.

I'll also offer a possibility that after years and years of shopping, shopping and shopping, maybe we're shopped out. How many big screen TVs do you need, really?

In our society, it indicates that people are too scared to extend themselves- not a good sign, and not a sign of maturity.

 

[DA60]

Whatever the reason, in an economy driven 60-70% by consumer spending, it cannot (imo) be a good sign in the short term.

 

[DVSentinel]

Whatever the reason, in an economy driven 60-70% by consumer spending, it cannot (imo) be a good sign in the short term.

That has been the problem for too long, think about the short term and screw the longterm. Basing so much of our economy on credit spending is bad for the longterm. While it is good for the longterm that it is down, it is only down for one month and still way too high to begin with. For longterm stability, we need to reduce consumer credit to a bare minimum and build the economy on real spending, not credit. Anytime we base our economy on credit spending, we are headed for a crash in the future.