Overall consumer credit increased $17.8 billion dollars to $2512.3 billion. Revolving credit decreased $2.9 billion while non-revolving increased $20.7 billion, the largest amount since November 2001. Total consumer credit is now $2.51 trillion, seasonally adjusted. Revolving credit are things like credit cards and non-revolving are things like auto loans and student loans. Mortgages are not included in this report.
The report gives percent changes in simple annualized rates, also known as a continuously compounded annualized rate of change. To put this change in perspective, at simple annualized rates, consumer credit increased almost to this level in the last 10 years. Consumer credit, annualized, increased 9.3%, in September 2004, 9.2% in October 2004, 9.2% in February 2002 and 18.2% in November 2001.
The increase was due to student loans. Federal government nonrevolving credit, which includes student loans increased another $27.9 billion to $453.0 billion, not seasonally adjusted. Tuition has soared this fall, 8.3% at public colleges alone. The federal government started making 100% of guaranteed student loans in July 2010. People went more into debt, clearly, to pay for the soaring, absurdly high, educational costs. These are aggregates, but it's doubtful that the U.S. population entering into college is directly proportional to these monthly increases. In other words, it's because school is absurdly expensive, not because magically all decided to go back to school. Additionally, student loans do not provide much economic stimulus as most of the funds go directly to tuition. Read more For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment