Previous Posts by CRONKITE

2 Responses to Consumer Credit Growing at its Fastest Pace Since the Great Recession

ottnott says:

I don’t agree with the writer’s position that growth in credit for student loans finances consumption in the same way that growth in other non-revolving credit does.

That’s an important point of difference, because growth in student loans accounts for pretty much all growth in non-revolving credit.

See these links, for example:
http://econintersect.com/wordpress/?p=19713
http://econompicdata.blogspot.com/2011/12/consumer-credit-excluding-student-loans.html

The writer’s position implies that students are choosing to finance a growing portion of their school expenses so that they have an increasing amount of cash to spend on current consumption. My belief is that a large portion of the growth in student debt reflect very rapid growth in tuition at state schools as states make large cuts in funding for higher education.

I haven’t looked for or seen data confirming my belief, but I have seen plenty of data on cuts in higher education and the resulting increases in tuition at public colleges and universities.

ottnott says:

Repost of a comment supposedly stuck in moderation limbo.

ottnott says:
Your comment is awaiting moderation.
March 22, 2012 at 4:51 pm

I don’t agree with the writer’s position that growth in credit for student loans finances consumption in the same way that growth in other non-revolving credit does.

That’s an important point of difference, because growth in student loans accounts for pretty much all growth in non-revolving credit.

See these links, for example:
http://econintersect.com/wordpress/?p=19713
http://econompicdata.blogspot.com/2011/12/consumer-credit-excluding-student-loans.html

The writer’s position implies that students are choosing to finance a growing portion of their school expenses so that they have an increasing amount of cash to spend on current consumption. My belief is that a large portion of the growth in student debt reflect very rapid growth in tuition at state schools as states make large cuts in funding for higher education.

I haven’t looked for or seen data confirming my belief, but I have seen plenty of data on cuts in higher education and the resulting increases in tuition at public colleges and universities.


Major US US Futures Europe Asia Commodities 2yr Euro Yields 10yr Euro Yields Oil
  • DOW 15,567.70 0.14%
  • NASDAQ 3,579.27 -0.59%
  • S&P 500 1,692.39 -0.19%
  • VIX 12.66 3.01%
  • SPX 500 (CFD) 1,693.90 0.09%
  • DOW (CFD) 15,578.00 0.07%
  • NASDAQ 100 3,046.10 0.48%
  • EURUSD 1.319 -0.21%
  • UK 6,597.44 -0.39%
  • GERMANY 8,314.23 -0.20%
  • FRANCE 3,923.09 -0.43%
  • SPAIN 8,073.70 1.35%
  • H. KONG 21,931.00 0.07%
  • JAPAN 14,737.00 -0.28%
  • KOREA 1,912.08 0.42%
  • SHANGHAI 2,031.88 -0.59%
  • NAT GAS 4.16 -0.46%
  • GOLD 1,230.50 0.07%
  • SILVER 18.65 0.31%
  • COPPER 3.07 0.79%
  • FRANCE 2YR 0.19 -10.90%
  • GERMAN 2YR 0.14 34.65%
  • ITALIAN 2YR 2.18 27.59%
  • SPAIN 2YR 2.81 8.21%
  • FRANCE 10YR 2.21 1.10%
  • GERMAN 10YR 1.55 -0.32%
  • ITALIAN 10YR 4.37 1.30%
  • SPAIN 10YR 4.69 1.69%
  • WTI 107.17 -0.06%
  • BRENT 108.28 -0.13%
  • WTI/BRENT 1.11