Chillin' out till it needs to be funded
Consumer Credit report for November was not something anyone could miss as the report engendered the new debate on Credit being boon or bane and financial bloggers and ordinary consumers went alon gin november holiday shoppin gwith Credit card in tow..
While the credit jump has spooked the Economists since November, we had published on the resurgence of revolving credit from the October report.s The November reports show that while the $14.8 bln jump in car loans is a good thing, the revolving component has jumped more than % times the small changeroo in October as US consumers gave the old heave ho to scepticism (good) and pessimism ( also good!)
Consumer credit continues on a lifetime high for the stock of credit not just the monthly change which is a 10 year high. But , not to bring a too big a spoiler to the party, we will drink up with you on the final word on 2011 growth, which shows that the US is back in the front seat ( almost) driving merrily up to growing itself out of trouble
The use of credit cards seems overtly optimistic compared to the unemployment figures out there, so relax and take a deep breath or two, if you are still among the ones that say US is out of the woods. The return of Detroit and preceptibly of jobs and housing markets , that should take place are the fuel that will drive the economy and till that change is wrought, this good thing might not last. As both housing and jobs have been on the cusp, this recovery might then become a fine one led by grow back in Credit