Consumer borrowing unexpectedly surges in March

Source: Huffington Post, Yahoo News.

http://www.huffingtonpost.com/2008/05/07/consumer-borrowing-unexpe_n_100714.html


Consumer borrowing unexpectedly surges in March

MARTIN CRUTSINGER | May 7, 2008 05:09 PM

WASHINGTON — Consumer borrowing rose in March at the fastest pace in four months, more than double the increase of the previous month, in what was seen as a sign of rising economic stress.The Federal Reserve reported Wednesday that consumers increased their borrowing at an annual rate of 7.2 percent, compared with a 3.1 percent rate of increase in February.



The overall growth in debt of 7.2 percent at an annual rate was the biggest gain since an increase of 8.25 percent last November.
Consumers have been moving to put more of their purchases on their credit cards as banks have tightened lending standards for home equity loans in response to the deepening credit crisis.

The gain was much larger than economists had been expecting and reflected strong borrowing on credit cards and also in the category that includes auto loans. The increase in consumer debt totaled $15.3 billion at an annual rate in March, much bigger than the $6 billion increase that economists had been expecting.

Economists said consumers were being forced to make greater use of their credit cards during hard economic times when they are being battered by job losses, soaring gasoline prices and higher food costs.



Read more: http://www.huffingtonpost.com/2008/05/07/consumer-borrowing-unexpe_n_100714.html

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We are really fucked. Borrowing to pay for food and everyday expenses. More and more of us are doing this just to stay alive. November's number represents Christmas spending. This number represents Bush's Recession. This kind of borrowing is extremely dangerous in my opinion. Lots of numbers come out, but this one, even though for March, represents the worst case situation. Borrowing on credit, at 18 percent. Now who benefits from this? Let's think. Oh, the asshole credit card companies, that's who. (backed up by the banking industry of course, they are one and the same)

in FL.. With all those spring breaks and college kids on spring break--- I think that's part of the reason for the surge.

Well.....not likely. It predicts a very severe recession or worse. So the Main Stream Media will bury it. Who cares if the country goes to hell. Not the Media Editors, they got jobs. Not the rich, they got money. No, just us.

it amazing just how little money it takes to buy off a politician to receive a huge return on that "investment"...

"unexpected." Wages aren't going up, after all.

They seem to go up 10-20% every week.

how about we all use our credit cards to buy fuel, than we all declare bankruptcy. No? This is what is likely to happen anyway with debt rising to pay for consumables. Might as well get on the band wagon.
I'm sure this would see the prices brought down and the corporations changing their tune. I'm guessing mass bankruptcies are coming so we will see just how this plays out.