Consumer credit down

[Sarge]

Down -12.0B vs estimate of -8.0B.

People are hacking down they debt ASAP. They keep that up and the banks profits will keep falling.

[Sarge]

Ding, Ding,

Just realized that this is the cash for clunkers month. Watch next month for sure. If they did this in spite of the car sales wow.

18 percent less interest, or more, on 12B each year for the banks.

[echebota]

18% interest on $12B is anout $2B/year devided over all US banks. This is nothing to them. What's $100mil revenue deducation for Bank Of America :) ????

[Sarge]

That is for one month. The prior month was down 21.B.

Add up the year and it starts to make a dent in their earnings. Every month with pay downs, the interest payments decrease faster.

[Deborah K]

So basically, if we produce and save (and pay off debt), rather than import and spend on credit, we'll destroy the economy?

[Sarge]

D,

That is the choice. To continue the way we have and the dollar goes down every day. We need to come up with new technology they can't export away from the US workers cheaply.

As Jimmy Rodgers just said on TV, those that think they have made a bunch of money in this market are fooling themselves as the dollar has gone down. Unless you are making the money in gold or silver. My words.

[Sarge]

D,

Another thing, people are smart in hacking down their debt. They are paying the banks with devalued dollars. Payback Supreme!

CNBC just reporting Grayson and Ron Paul calling for Ben B not to be re nominated before we find out where the money has gone.

Grayson zinged Maria B. I didn't catch it all but she was not happy.

[MsDoodahs]

I would love a toob of that.

:)

[hugolp]

So basically, if we produce and save (and pay off debt), rather than import and spend on credit, we'll destroy the economy?

No. You will destroy the monetary system, wich is not necesarely a bad thing.