Monday, January 9, 2012

HUGE: November Consumer Credit Surges by $20.4 Billion

Consumers increased their debt in November by a seasonally adjusted $20.4 billion, the largest increase since November 2001, the Federal Reserve reports.

Monthly debt rose at a 10% annual rate in November, a much faster pace than had been expected by (surprise) Krugman-like Keynesian economists. They simply don't get that when the Fed prints money, it gets into the system.

All types of credit gained in the month. The non-revolving category of debt, such as auto loans, personal loans, and student loans, rose $14.8 billion, or 10.7%, in November. Credit card debt jumped by $5.6 billion, or 8.5%, in the month.

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