Consumer borrowing plunged in October

[IDemo]

Decline was biggest in 14 years as auto loans fell sharply

AP - Updated: 2 hours, 10 minutes ago

WASHINGTON - Consumer borrowing fell in October by the largest amount in 14 years, reflecting a big drop in auto loans.

The Federal Reserve reported Thursday that borrowing declined at an annual rate of 0.6 percent in October following a revised 2 percent increase in September. It was the biggest drop since a 1 percent plunge in October 1992.

The weakness last month came from a huge falloff in demand for auto loans and other types of non-revolving credit, which declined at a rate of 3.3 percent in October, following a small 0.4 percent gain in September.

The drop in the category that includes auto loans was the largest one-month decline in this area since a 3.6 percent fall in May 1993.

http://www.msnbc.msn.com/id/16096002/

[lovuian]

1. The Economy is going into a recession

and hopefully not a depression
Bush could be the Hoover of our time

[OrangeCountyDemocrat]

2. Speaking Of Herbert Hoover....

Doesn't Georgie's father have the same middle name as the first name of the "architect" of the Great Depression?

[no_hypocrisy]

3. So I guess that means that consumers can only buy what they

can afford . . .

[superconnected]

4. This is very good news.

Buying on credit is not a good thing. People are either scaling back what they buy, or are refusing those credit card predators.

I actually saw a card that was 45% percent interest per year. It was sent to my 23 yo niece. That was 2 years ago. Wonder what they're up to now.

[humbled_opinion]

5. Disgusting

What those CC companies can get away with on the unwary and the young that are trying to get established. There should be stricter laws on the limits in other words irresponsible card holders should not have cards period not increased rates dragging everyone into the mess of bad creditors... IMHO anyway.

[xchrom]

6. while it's predicted that there will be a recession 07 and 08 --

my hope is that this will be a trend of more responsible spending.

the only thing that bothers me -- is that can't save in a bank or money market anymore -- everything is designed to send you to the stock market.

[Tellurian]

7. no, not really..

the stock mrkt is too risky unless you're buying energy stocks.

it's the tried and true real estate..it hasn't hit rock bottom yet.
give it another year and position yourself to buy

[xchrom]

8. i do think ''investment'' real estate

is good for average folks -- as a reasonable way to make money.

it involves a lot of work and discipline.

[Voltaire99]

9. You need this site.

www.thehousingbubbleblog.com

It may just change your thinking and possibly save your shirt.

[xchrom]

10. i know the site.

and i agree pretty much with the whole housing bubble scenario.

but there are some fiscally responsible people of very average means who can take advantage of real estate and make it work well for themselves.
that's all i'm saying.

[Voltaire99]

11. True.

Yes, you're right.

When and where it will be safe for those people to buy into a falling market is another question, and best not left to chance. That's all I'm saying.

[xchrom]

12. and that too is correct.

we agree.

[kineneb]

13. responsible spending

at our house is buying canned and boxed goods that don't need refridgeration.

What about those of us who are already poor and dependent on government disability checks? I wonder what will happen.

[xchrom]

15. i'm poor as a church mouse with a mortgage.

so i'm as nervous as anyone.

[melm00se]

14. unhealthy behavior

has to be paid for with a a bit of pain....I hope that pain will shock people back to the idea that cash is good, credit is bad (in broad strokes, I know there are some excpetions)....