The "summer of recovery" could ONLY have been the brainchild of one of our '60's-hippy-wannabe Boomers currently hard at work destroying the economy of this country.
- I can say this because Benyamin Bernanke and I are both the same age and remember the days when Nancy P and company were dropping acid in Haight-Ashbury and coined the "summer of love."
This past week of the "summer of recovery" has seen a busy-busy-busy Federal Reserve reporting and commenting upon the levels of credit in our economy. Not as much fun perhaps as a Jimi Hendrix concert, but exactly LIKE one of Jimi's concerts completely failing to mention:
- consumer credit has contracted for 15 of the past 16 months.
- the $14.9 bn in credit "lost" during April is the SECOND HIGHEST monthly amount in history...second only to the $23.4 bn "lost" in Nov 2009.
- the 6% reduction in consumer credit ($148 bn) is the largest for any 16-month period since Sep 1944 [that was WWII when FDR was President for recent graduates of government-run public schools].
Credit contraction for both the consumer and small business continues at 'historic' rates.
Consumers paying-down their credit balances OR banks writing credit balances off (taking losses)? You tell me. The FED either does not know, or is not saying. Either way we should be plenty concerned...
Monday 19 July 2010
The "summer of recovery".............from Rico
From Theo Spark at 07:55
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