"Corporations have been willing and able to borrow and issue bonds at a record pace this year. For consumers and small businesses, it's been just the opposite. They have been starved for credit; or, in the case of many, they've turned anorexic in their revulsion for borrowing.
The latest evidence comes from August consumer credit numbers released Wednesday, which show a $12 billion plunge in non-mortgage borrowing. While smaller than July's record $19 billion plunge, the August's was the seventh straight decline, the longest negative streak since 1991.
The most severe shrinkage continues in the revolving credit category, which consists mainly of credit cards; it fell nearly $10 billion in August."
Thursday, October 8, 2009
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