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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (70249)	6/8/2006 10:46:45 AM
From: Wharf Rat	Respond to of 361388

latimes.com The Federal Reserve reported Wednesday that consumer borrowing rose at an annual rate of 5.9% in April, a significant increase from a 0.8% gain in March. The increase in dollar terms was $10.6 billion, which pushed total consumer credit to a record $2.17 trillion. Consumer borrowing for auto loans and other types of nonrevolving credit rose at a rate of 6.7% in April after having fallen 2.6% in March. I first I thought duh, people are charging all their gas or increased costs. But this is non revoloving loans, term loans! Later today the FED is suppose to release the Flow of Fund Report. I would bet that the D/E ratio sets a new record! tate423 on Thursday June 08, 2006 at 9:59 AM EST theoildrum.com ============================= Don't want to double post, but check this out. Consumer spending accounts for 2/3 of our economic activity. The above post says we are still spending! The business community is awash in cash. I mean American companies are sitting on a wad of cash. Now check out this articel from CFO.com. CFO's are scared. Inflation and wages are also worrisome. U.S. companies expect to increase their prices by 3.1 percent over the next 12 months. This would put the U.S. economy dangerously close to 3.5 percent inflation, the level at which a majority of CFOs say their bottom lines would begin to suffer. Trouble may arrive even sooner as a result of oil prices; finance chiefs say prices above $75 per barrel will harm profits. They have similar concerns about the federal funds rate. "CFOs don't want any more Fed hikes," said Campbell Harvey, founding director of the survey and a finance professor at Duke. "The CFOs have drawn a line in the sand. Rates above 5.5 percent will be damaging, and rates above 6 percent would cause substantial damage to their bottom lines. The Fed does not have much wiggle room left." I'm on record saying their will be a rate hike by the end of month at the next FOMC meeting. Companies will be feeling this more and more but I think the chips start falling in the 1st Quarter next year. tate423 on Thursday June 08, 2006 at 10:22 AM EST