[quote=patientrenter]Rt 66, all you’re seeing on credit is some retrenchment toward historical norms. On housing, the biggest user of credit in our economy, the govt continues to allow vast amounts of truly incredibly easy and cheap money.
Apparently 3.5% downpayments were too high. I think downpayments of less than 30% or so in an environment of severe price drops in RE are ludicrously small. And 20% is an historical minimum standard for most people.[/quote]
“Consumer Credit Dries Up At Record Pace:
If you think that credit to consumers (and by consumers) was being cut, you will see was an understatement. Consumer credit for the month of March was just released and it is the largest percentage drop in almost two decades. The March consumer credit report came in down $11.1 billion. Bloomberg had estimates of -$4 billion and Dow Jones had forecast a -$3.5 billion drop. It looks like this is actually a record drop measured by dollar terms”
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I don’t know…an $11 billion reduction for one month seems pretty drastic. Worst % going back over a few recesions and worst ever in dollar terms.
Agreed on the home loans. Although they are harder (in line with historical requirments) to get, they are being made by the Gov. not banks. So it has no relevance to real free market credit drying up.
