Professor Mark J. Perry's Blog for Economics and Finance
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
11 Comments:
Fewer home owners? Folks paying off credit cards? Fewer people eligible for borrowing? Refinancing?
Deleveraging improving
i suspect this has a great deal to do with foreclosures and cram downs.
every time there is a REO sale, this number drops.
non housing related debt declined less than 1%.
it's certainly not being driven by income...
Setting up a sustained bull market, domestically and globally.
Things are falling into place, albeit slowly.
This is certainly good news. It is great that the people in the U.S. are reducing their debt loads.
Now if we could just get the politicians to do the same for public debt.
mostly due to foreclosures & credit card balance written of by the banks...
Also, the banks will not make new loans.
Losing your $60,000 job, house, car, credit cards, etc. will reduce monthly payments.
And then when you get your job at McDonalds for $20,000, you don't have to worry about a mortgage, a car payment, credit cards, etc.
Actually, people are reacting fairly rationally. Of the $6 Billion increae in Consumer Credit last month, about 80% was in Student Loans.
The Bubbas, and Bubbettes are out getting "new skills."
Mobs (and governments) may be irrational, but individuals are pretty sensible.
Refinancing housing?
Zillow: See the Worst Home Prices Drop Since 2008
Declining loan volumes, tighter credit, deleveraging, the refinancing boom that ended last year, foreclosures, charge offs, low demand for loans, rising interest rates, uncertainty, high unemployment - the usual suspects.
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