Still No Credit!

Last week, there was a very important release of data that the national news media either overlooked or intentionally failed to report on because it shows that all the bailout monies and all the work and threats by the Obama Administration are not working to free up credit in this country. That important piece of data was the monthly Consumer Credit Report which, for the 6 out of the last 8 months, showed that the consumer is saving and not really spending; and, that banks aren't lending either (See Full Story)

More than any other piece of data, the Consumer Credit is a peek at what the average person in this country is really doing. Sure, the news media is all happy because the mortgage activity is up for the month. However, that is a comparative number from a rock bottom. It's sort of like saying that a penniless bum found a dollar in the street and, then, saying he is now flushed with cash.

Consumer Credit has to stabilize before anyone can truly say that this recession is at an end. It's a statistic that reflects both consumer attitudes and the day-to-day lending activity in this country. Only when consumer credit finds itself out of the woods can you expect our automobile and housing markets to substantially improve with jobs creation to follow.