Consumer Borrowing Down in Oct. by $7.2B - must read!

[Deja Q]

THANK GOD

Consumer Borrowing Down in Oct. by $7.2B

WASHINGTON -- Consumer borrowing plunged at a record annual rate of $7.2 billion in October, reflecting a big drop in auto loans.

The Federal Reserve reported Wednesday that the decline was the biggest amount ever in dollar terms, and included a record drop of $5.6 billion rate of decline in the category that includes car loans.


(SNIP)

While retailers are reporting a mixed start to the holiday shopping season, analysts cautioned against reading too much into the one-month falloff in consumer credit.

(SNIP)

The 4 percent drop in consumer credit followed a 2.2 percent increase in September while the 4.9 percent drop in auto loans and other non-revolving credit followed a 1.1 percent decline in September. These loans had shot up by 6.2 percent in August as consumers responded to attractive incentive offers.


Good to see.

Of course, I must respond to this lunacy:

"I have full faith in the ability of the American consumer to keep spending," said David Wyss, chief economist at Standard & Poor's in New York.

David Wyss. Where have I heard of this seditious little fucker before? Oh yeah, he said "What is keeping us out of recession is the consumer... ...There is a risk of a sudden attack of prudence. If people stop living beyond their means, this could turn into a recession.”


So, I implore patriots to stop spending. Why should we spend when the corporate elite, Wuss's friends, see fit to destroy our jobs and opportunities for jobs that give us the means TO spend with below-poverty paying jobs? They just want us to spend until they can switch over completely. (just wait until the spin they make when destabilization truly takes hold...)

[linazelle]

1. I'm contributing to that trend. Glad to hear I'm not alone. nt

[oneighty]

2. Me too

End of regular use of credit cards first days of 2006.


:hi: 

[BJW]

5. I'm near exclusive second-hand and garage sale shopper myself

:hi:

[SoCalDem]

3. Lots of people filed for BK before the deadline and have no credit

or are opting out of getting back into debt.

This might not be a very "plastic-y" Christmas..

[Historic NY]

4. I'm only buying things for my house.........

a few pieces of furniture & carpet I got on e-bay or internet. Other than food/necessities, 6 shirts, matress's and fish food I've slowed down considerably. I am not even carrying a credit card balance. I wanted to buy a new car, but I've decided to wait until they start giving them away. Probably will redo my old 47 chevy street rod instead. I've had it 11 yrs and spent only about $500 on it, she could use a face lift.

[linazelle]

7. I'm holding off on buying a new car, too. I was going to buy

last July but I'm glad I waited since gas prices skyrocketed right after that. All of this has to come to a head (the heating and gasoline prices; housing bubble, inflation, unemployment....). At this point, I'm planning on keeping my trusty little scooter until the wheels fall off.

[Historic NY]

11. I figured why give one of the big three money for a new car....

when I can help out a small "ma & pa" body/restoration shop. They could use the business and my old car deserves a make over. My newest vehicle is 7yrs old and is paid for.

[cliss]

6. Thanks Hypno,

for the near-nonexistent good news lately.

This is VERY good news. Just imagine how the credit card companies must be sweating right now. Xmas is their biggest heist of the year! And people aren't falling for it.

I'm with you: we are boycotting the Spend-and-Sweat Holiday shopping. Most of our stuff will be handmade.

[linazelle]

8. It serves the credit card companies right for lobbying against

bankruptcy and raising lending rates. Hopefully, people will stay out of debt.

[Deja Q]

9. But all those tellers and operators will have to be laid off...

No work to do and the CEO shouldn't have to take the pay cut, of course.

(When I used to post pro-boycott messages, I got similar responses similar to that in the subject line. Nice to see times finally changing.)

[Nicole]

10. my thoughts exactly

I paid off my cards & cut them up.

[AzDar]

12. Well, ain't that suh-weet...May the C.C. companies die by the

egregious piece of legislation they managed to get passed. Why risk consumer debt when now there's virtually no chance of getting rid of it...even if you become incapacitated? Better put those cards away! Greedy bastards cut their own throats with their B.K. "reform", didn't they?