Consumers continue to remain hesitant to take on high levels of new debt as the debt de-leveraging environment clearly continues. The latest consumer credit report showed a marginal year over year increase in consumer credit, however, in real dollar terms the data remains near its lows:
“Consumer credit increased at an annual rate of 1/2 percent in April 2010. Revolving credit decreased at an annual rate of 12 percent, and nonrevolving credit increased at an annual rate of 7 percent.”
Consumer Credit YoY % Change
Consumer Credit $B
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.