Wednesday, May 07, 2008

U.S. Consumer Debt Surges in March

by Bill McBride on 5/07/2008 03:37:00 PM

From Bloomberg: U.S. Consumer Debt Rises More Than Forecast in March

Consumer credit increased by $15.3 billion for the month to $2.56 trillion, the biggest monthly rise since November, the Federal Reserve said today in Washington. In February, credit rose by $6.5 billion, previously reported as an increase of $5.2 billion.
...
``Consumers are strapped as incomes are not keeping up with inflation and this is leading them to rely increasingly on credit to see them through the worst housing downturn since the Great Depression,'' said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi in New York. ``The days of extracting cash from one's home to spend on goods and services are long gone.''
Say goodbye to the Home ATM, and hello to credit cards.

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