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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (23020)	12/7/2004 4:15:58 PM
From: ild	Read Replies (3) \| Respond to of 110194

I remember you had a theory about how rapidly increasing revolving credit is good for US economy. -g- Consumer installment credit expanded by $7.7 billion in October, after an upward revised gain of $13.6 billion in September. Revolving credit expanded by a mere $1.2 billion in October, but this follows a hefty $11 billion gain in September. Nonrevolving credit expanded by $6.4 billion in October after a more moderate $2.6 billion gain in the previous month. It is surprising that the spurt in nonrevolving credit occurred in October rather than September, because September motor vehicle sales surged, but they fell back in October. Incidentally, new car loans at auto finance companies posted a drop in average interest rates in October. Loan rates average 4.42 percent in October after averaging 5.62 percent in August and 5.74 percent in September. This probably incorporates special incentives. Consumers are extending their auto loans: the average maturity period was 63.4 months in October compared with 60.9 months in September. The amount financed was 8.5 percent higher in October (from September) as well.