The January results of the Federal Reserve’s Assets and Liabilities of Commercial Banks report indicated that total consumer loans at all banks are contracting at the fastest rate in at least 63 years.Dropping 1.87% from December 2009 and 6.10% since January 2009, total consumer loans appears to be accelerating into a contraction the like of which has not been seen before.
The certainly has the earmarks of a significant consumer credit crunch and appear to suggest that economic activity is likely continuing to slow.
Taken together with this months the ending of the Feds TALF program, it would appear that households will be facing likely the tightest credit conditions seen in generations.
