Reply #42: I didn't see this mentioned here yesterday, but consumer credit was down again in July

[OnlinePoker]

There is now less credit card/short term debt outstanding than at any time since 2005. Revolving debt is at $827 bln, down from a high of $957 bln in 2008. Non-revolving debt (mortgages, car loans, etc) was up slightly by $.7 bln to $1591 bln, also lower than 2008, but only by $12.5 bln. Given that the savings rate also slipped in July, it sounds like people are finally getting the idea that it's better to save up for a purchase rather than buy on credit. When you aren't guaranteed that you'll have a paycheque next month, this is the most prudent strategy.