NYT/AP: Consumer Borrowing Falls by Record Amount

[DeepModem Mom]

Consumer Borrowing Falls by Record Amount
By THE ASSOCIATED PRESS
Published: December 7, 2005


WASHINGTON (AP) -- Consumer borrowing plunged in October by a record amount in dollar terms, reflecting a big drop in demand for auto loans.

The Federal Reserve reported Wednesday that Americans' borrowing fell by $7.2 billion at an annual rate in October, the biggest amount on record, with much of that decline reflecting a record drop of $5.6 billion, at an annual rate, in the category that includes auto loans....


http://www.nytimes.com/aponline/business/AP-Consumer-Credit.html

[AX10]

1. Could be the economy slowing down.

[DBoon]

2. Could be the new bankruptcy law

nt

[regnaD kciN]

4. Could be that most "working stiffs"...

...have tapped out all their credit already. :-(

[Vogon_Glory]

3. So Does The So-Called Bankruptcy Reform

Another factor could be the so-called bankruptcy reform legislation. Who wants to be caught under a mountain of debt in case things get tough?

I hope this trend away from debt gets reflected in some executives' Christmas bonuses. Something for the greedier little dears to contemplate this christmas.

[NVMojo]

5. could be all the weight on the shoulders of the middle class in the USA

[VegasWolf]

6. Who wants to buy a car when you don't even know how you will

pay your winter heating bills?

[Tempest]

9. Heating bills are a big reason IMHO

A collective mild shock to the system was recorded in November from heating bills.

Just wait until December bills come due with this current record cold throughout the midwest.

Add to it the huge decrease in the number of households who will not be receiving assistance this winter.

[benny05]

10. We had record cold last month too

After Katrina, I told my spouse that it would be best NOT to plan a week long winter holiday as we normally would due to natural gas bills. We got our first one 2day: nearly $275.00. It was cold in November (last part) and now it is frigid in December, with no letting up.

I am not complaining because I convinced my spouse to think ahead in making our budget choices, but if my bill was that high, no telling for those who have to choose between lights and heat. Jeepers! ;( More families are having to make those choices...that are not extraneous. I hope I don't have to, but unless we start voting in more Dems to national offices, we will continue to get trampled.

My rant...even it's only worth a cup of Joe...

Benny

[screembloodymurder]

7. Merry Christmas?

Bush even looks like the Grinch.

[Straight Shooter]

8. Our streets of gold have turned to rust, the American Dream ...

... has turned to dust.

[MiniMe]

11. I think its a combination of bankruptcy cases before the deadline and

people refinancing to pay off their credit card debt. I refinanced and paid off my car loan and all my credit cards.

[Media_Lies_Daily]

12. I almost guarantee those that have gone bankrupt aren't borrowing....

...and that number is VERY high thanks to the greed of the CC companies.

[No Exit]

13. Oh, no! The lenders will have a bleak Xmas!

Oh, dear. Couldn't some of us get out there and borrow at above-prime interest rates, just to be sure they make enough to keep the lights on in their Rhode-Island-sized mansions?