How Is This Possible?

The latest consumer credit number are out and  the decline we have seen in recent months continues. The US consumer credit contracted to $2415,3 billion in May, from $2424,4 billion in April. That’s another (almost) 10 billion decline, or 4,5% annualized.  But how in hell can the US authorities miscalculate monthly credit numbers by $16 billion?

“Yet stocks, which confirm again they are now completely decoupled from facts, statistics, or reality in general, jump on this very negative development.”

Zero Hedge

Consumer Credit in the US plunged from $2424.4 billion in April to $2415.3 billion in May, a $9.1 billion decline, or 4.5% annualized, on consensus of $2.3 billion. Yet the biggest stunner was the April revision which was whacked from +$1 billion to a revised;  -$14.9 billion!

That means there has been a $24 billion decline in consumer credit in the past two months.

The biggest hit was – as usual – experienced by revolving credit accounts, which fell by a 10.5 annualized rate to $830.8 billion, from $838.2 billion in April, and just north of $910 billion a year earlier.

The bottom line is that consumers continue to retrench as the deflationary wave gets ever bigger.

And the only lender, for the second month running is….. guess who?

The Econotwist’s Blog have a really hard time understanding how the US authorities can miscalculate the monthly numbers by nearly $16 billion. Have they acquired some old modeling software from Lehman or Bear Stearns, or something?

The expression “elephant in the room” just doesn’t cover it.

And I won’t make any attempt to come up with an explanation – or even a comment.

I’ll leave the comment to Tyler Durden at Zero Hedge:

“Yet stocks, which confirm again they are now completely decoupled from facts, statistics, or reality in general, jump on this very negative development.”


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