Consumers Trim Borrowing By $3.2 Billion In May As Recession Bites Into Investments And Jobs

[Purveyor]

Source: Associated Press

July 8, 2009 - 2:00 PM

WASHINGTON - Consumers trimmed borrowing in May for the fourth straight month as the recession took another bite out of investments and drove unemployment higher.

The Federal Reserve says consumer credit fell at an annual rate of 1.5 percent, or by $3.2 billion, from April. Economists expected a deeper cut of $9.5 billion.

--SNIP--

Revised data show consumers ratcheted back borrowing at a 7.8 percent pace in April, or by $16.5 billion. That was a bigger cut than first reported and the largest — in dollar terms — on records dating to 1943. The $15.6 billion drop in March was slightly less than previously reported, but the second largest tally ever.


Read more: http://tinyurl.com/lxucjf

[aggiesal]

1. It's the chicken and egg problem, ...

Jobs are cut, people stop spending,
causing more jobs to be cut, causing more people to stop spending, ...

Vicious circle really.

We should thank King George, for all he's done to our country.