The Homa Files

Total consumer credit outstanding fell 0.1 percent in July, marking the 20th monthly decline in the past 22 months.

Top-tier borrowers retain access to credit, but these lower-risk consumers continue to impose austerity measures as they de-leverage in the wake of the recession.

At the same time, less creditworthy borrowers have been substantially cut off from credit due to high levels of lender risk aversion.

Bottom line: Tighter Consumer Credit Poses Headwind To Recovery

Ken’s Note: And the impact of FinReg hasn’t been felt yet.  It’s called unintended consequences …

Source: Marcus & Millichap
http://blog.marcusmillichap.com/2010/09/14/tighter-consumer-credit-poses-headwind-to-recovery/

This entry was posted on September 17, 2010 at 6:53 am and is filed under Financial Crisis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.