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Surprise: Americans Are Borrowing Again

Posted on Mar 7, 2010
Flickr / Andres Rueda

January’s increase in consumer borrowing could signal rising confidence in the economy.

In news that could signify a whole gamut of different economic conditions, the Federal Reserve has announced that Americans’ consumer borrowing rose unexpectedly in January, the first gain in a year. —JCL

The BBC:

Borrowing by US consumers rose for the first time in a year in January, according to the Federal Reserve.

The central bank said consumer credit rose 2.4% or $5bn (£3.3bn) from December 2009 to a total of $2.45 trillion in the first month of 2010.

It was the first gain after a record 11 straight declines and it was the largest increase since July 2008.

Analysts were expecting a $4.5bn decrease in January following a $4.6bn fall in December.

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MarthaA's avatar

By MarthaA, March 8, 2010 at 9:51 am Link to this comment

Usury, corruption and conservatism is the problem, not the populace.

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By bogi666, March 8, 2010 at 9:10 am Link to this comment
(Unregistered commenter)

Martha A, you’re right, until usury ends[and it won’t]this country/world will never have a level playing field. The warning about usury are 1000’s of years old and for good reason. The money changers and their usury will not end peacefully. The only solution, NO DEBT.

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By Will Flood, March 8, 2010 at 7:53 am Link to this comment
(Unregistered commenter)

The official line is quite deceptive.  The folks at Zero Hedge looked into the numbers a bit and report, “Today, the market spiked in the last hour of trading after it was announced that total consumer credit increased for the first time in a year (not all credit, mind you, just car loans; consumers are still eagerly paying down their credit cards). And who was the source for this generosity you may ask? Why, the US Government of course. Not only that, but Non-Seasonally Adjusted Consumer credit was actually down by $4 billion. But let the government have its smoothing fun. On a non-seasonally adjusted basis, consumer credit has declined by $108 billion in the past 12 months. What may be surprising, is that were one to strip away the contribution from the Federal Government of $78 billion, the decline would have been almost double, or $187 billion. Furthermore, in January, NSA consumer credit would have declined by $14 billion had it not been for the… wait for it… Federal Government, which sourced $10.4 billion in new consumer credit. So here is what happens in case you haven’t figured it out already: the government takes taxpayer money, and lends it out to all sorts of destitutes at zero % interest, who have to keep up with the Joneses at all costs, and even though can not afford to put down any equity, must buy a new car every 6 months (even though they have likely not made a mortgage payment in about a year… not to worry, Uncle Sam is footing that too via the Federal Reserve and Fannie and Freddie), and when the news of the government’s generosity hits the market, and the spin is that Americans are again confident enough to borrow, the few SPARC machines left trading do whatever Liberty 33 tells them to, and bump up the total capitalization of the market by about $20 billion, putting money straight into the pockets of Goldman Sachs and other recent bailoutees, who without doubt deserved a $70 billion bonus season in 2009. And now you know where your money goes to.”

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By MarthaA, March 8, 2010 at 7:32 am Link to this comment

Usury laws should be reinstated.

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By bogi666, March 8, 2010 at 6:14 am Link to this comment
(Unregistered commenter)

Could this be propaganda designed to convince the NARCISSISTIC, CONSUMERIST, GLUTTON Americans that its vogue to be American again so borrow just like real Americans? Be a patriotic American, BORROW, BORROW because the Fed says to BORROW, BORROW and we know we can trust the Fed, which is ownedd by the private banks they also regulate.

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By Squeeky, March 7, 2010 at 10:05 pm Link to this comment

I played the “keeping up with Jonse’s” game to $20,000.00 of credit card debt. The first $500.00 of my paycheck went to debt and interest for 8 years.I paid far more than $20,000.00 to settle those credit cards. It was hell.

Learning to live within my means has improved the quality of my life tremendously. I highly recommend it.

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By Marshall K, March 7, 2010 at 9:56 pm Link to this comment

America has a terminal case of stupid.

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By ofersince72, March 7, 2010 at 8:28 pm Link to this comment

Americans are borrowing more again…..

Why is this a good thing???

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By MarthaA, March 7, 2010 at 3:33 pm Link to this comment

Usury is the problem.

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By Big B, March 7, 2010 at 1:40 pm Link to this comment

Only in america could an economic crisis caused by excessive public and private debt be addressed by doing what else but creating more debt. Prez Barry has been touting the loosening of credit as the cornerstone to an american economic revival. His evil clintonian minions, Summers and Geithner, would like us all to re-finance our homes, buy an SUV, and run up the charge accounts again because in our american house of cards the only way we can maintain our standard of living is to borrow EVEN MORE.

Debt has made the corporate takeover of america possible. Debt has enslaved the american worker to poor jobs, with poor benefits. Debt put our government up for sale at a discount.

Keep in mind, he who has debt has no power. He who holds debt, has all the power.

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