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Re: demand drives a modern economy, demand is wage driven, wages after adjusting for inflation are at about 1973 levels, demand is plummeting driving deflation:Consumer borrowing drops by $14.8 billion in September, record 8th straight decline
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martin
Nov 7, 2009, 12:40:44 PM11/7/09
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On Nov 6, 5:06 pm, Nickname unavailable <Vide...@tcq.net> wrote:
> demand drives a modern economy, demand is wage driven, wages after
> adjusting for inflation are at about 1973 levels, demand is plummeting
> driving deflation:Consumer borrowing drops by $14.8 billion in
> September, record 8th straight decline
>
> http://finance.yahoo.com/news/Consumer-borrowing-drops-148B-apf-37775...
>
> Consumer borrowing drops $14.8B in September
> Consumer borrowing drops by $14.8 billion in September, record 8th
> straight decline
> • By Martin Crutsinger, AP Economics Writer
> • On 3:59 pm EST, Friday November 6, 2009
>
> WASHINGTON (AP) -- Consumers borrowed less for a record eighth
> straight month in September amid rising unemployment and tight credit
> conditions. Economists worry the declines in borrowing will drag on
> the fledgling recovery.
>
> The Federal Reserve said Friday that borrowing fell at an annual rate
> of $14.8 billion in September. That's the biggest decline since July
> and was larger than the $10 billion drop economists expected.
> Americans are borrowing less as they try to repair cracked nest eggs
> and replenish rainy day funds in a dismal jobs market. Many are
> finding it hard to get credit as banks, hit by the worst financial
> crisis in decades, have tightened lending standards.
> Borrowing by consumers for revolving credit, including credit cards,
> fell at an annual rate of 13.3 percent in September, the same as
> August. This category has declined for a record 12 straight months.
> Borrowing for non-revolving loans, including auto loans, dropped at an
> annual rate of 3.7 percent in September after edging up 0.1 percent in
> August. The August gain reflected the surge in car sales as consumers
> rushed to take advantage of the government's Cash for Clunkers
> program.
> The $14.8 billion overall decline in borrowing left total consumer
> credit at $2.46 trillion in September. The 7.2 percent annual rate of
> decline followed a 4.8 percent drop in August. The Fed's report
> doesn't include mortgages or other loans secured by real estate.
> While economists have worried for years about the low rate of U.S.
> savings, the concern is that consumers could derail the recovery if
> they begin socking away too much of their incomes. Consumer spending
> accounts for 70 percent of total economic activity.
> The government reported last week that the overall economy grew at an
> annual rate of 3.5 percent in the July-September quarter, the first
> growth after a record four straight declines and the strongest signal
> yet that the recession has ended.
> Some worry that growth will sag in coming quarters partly because the
> nation's unemployment rate keeps rising. It climbed to 10.2 percent in
> October, the Labor Department reported Friday, the first time above 10
> percent since 1983. Many economists believe the jobless rate will rise
> further in coming months.
> But there some positive signs this week that consumer spending may not
> weaken as much as had been feared. The nation's automakers reported
> that total sales of cars and light trucks rose 12 percent in October
> from a dismal September, a month when sales plunged because the
> clunkers program ended in August.
> Also, the nation's big retail chains reported that consumers spent a
> bit more last month. Sales rose 2.1 percent compared with sales at the
> same stores in October 2008, according to a tally by International
> Council of Shopping Centers-Goldman Sachs. That was the best year-over-
> year result since July 2008 and beat estimates of a 1 percent gain.
> Among stores doing well were: Costco Wholesale Corp.; TJX Cos., which
> operates T.J. Maxx and Marshalls, and Gap Inc. Sales also improved at
> luxury retailers like Saks Inc. and Nordstrom Inc.
> The eight consecutive declines in consumer credit is the longest
> stretch on records dating to 1943. The previous record of seven
> straight drops from June through December 1991, also occurred when the
> country was struggling to emerge from a recession.
> demand drives a modern economy, demand is wage driven, wages after
> adjusting for inflation are at about 1973 levels, demand is plummeting
> driving deflation:Consumer borrowing drops by $14.8 billion in
> September, record 8th straight decline
>
> http://finance.yahoo.com/news/Consumer-borrowing-drops-148B-apf-37775...
>
> Consumer borrowing drops $14.8B in September
> Consumer borrowing drops by $14.8 billion in September, record 8th
> straight decline
> • By Martin Crutsinger, AP Economics Writer
> • On 3:59 pm EST, Friday November 6, 2009
>
> WASHINGTON (AP) -- Consumers borrowed less for a record eighth
> straight month in September amid rising unemployment and tight credit
> conditions. Economists worry the declines in borrowing will drag on
> the fledgling recovery.
>
> The Federal Reserve said Friday that borrowing fell at an annual rate
> of $14.8 billion in September. That's the biggest decline since July
> and was larger than the $10 billion drop economists expected.
> Americans are borrowing less as they try to repair cracked nest eggs
> and replenish rainy day funds in a dismal jobs market. Many are
> finding it hard to get credit as banks, hit by the worst financial
> crisis in decades, have tightened lending standards.
> Borrowing by consumers for revolving credit, including credit cards,
> fell at an annual rate of 13.3 percent in September, the same as
> August. This category has declined for a record 12 straight months.
> Borrowing for non-revolving loans, including auto loans, dropped at an
> annual rate of 3.7 percent in September after edging up 0.1 percent in
> August. The August gain reflected the surge in car sales as consumers
> rushed to take advantage of the government's Cash for Clunkers
> program.
> The $14.8 billion overall decline in borrowing left total consumer
> credit at $2.46 trillion in September. The 7.2 percent annual rate of
> decline followed a 4.8 percent drop in August. The Fed's report
> doesn't include mortgages or other loans secured by real estate.
> While economists have worried for years about the low rate of U.S.
> savings, the concern is that consumers could derail the recovery if
> they begin socking away too much of their incomes. Consumer spending
> accounts for 70 percent of total economic activity.
> The government reported last week that the overall economy grew at an
> annual rate of 3.5 percent in the July-September quarter, the first
> growth after a record four straight declines and the strongest signal
> yet that the recession has ended.
> Some worry that growth will sag in coming quarters partly because the
> nation's unemployment rate keeps rising. It climbed to 10.2 percent in
> October, the Labor Department reported Friday, the first time above 10
> percent since 1983. Many economists believe the jobless rate will rise
> further in coming months.
> But there some positive signs this week that consumer spending may not
> weaken as much as had been feared. The nation's automakers reported
> that total sales of cars and light trucks rose 12 percent in October
> from a dismal September, a month when sales plunged because the
> clunkers program ended in August.
> Also, the nation's big retail chains reported that consumers spent a
> bit more last month. Sales rose 2.1 percent compared with sales at the
> same stores in October 2008, according to a tally by International
> Council of Shopping Centers-Goldman Sachs. That was the best year-over-
> year result since July 2008 and beat estimates of a 1 percent gain.
> Among stores doing well were: Costco Wholesale Corp.; TJX Cos., which
> operates T.J. Maxx and Marshalls, and Gap Inc. Sales also improved at
> luxury retailers like Saks Inc. and Nordstrom Inc.
> The eight consecutive declines in consumer credit is the longest
> stretch on records dating to 1943. The previous record of seven
> straight drops from June through December 1991, also occurred when the
> country was struggling to emerge from a recession.
You think 2009 is lously just wait until next year.
http://www.vdare.com/ V-Dare
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