Consumer borrowing down sharply in May


Inquiring minds are contemplating Yahoo.com’s article on consumer spending. Well, well, well. Weren’t we supposed to be in a recovery? Pray tell, how do you get these numbers:

The Federal Reserve said Thursday that borrowing dropped by $9.1 billion in May. It also said borrowing declined by $14.9 billion in April, revising an initial estimate that showed a gain of $995 million for the month.

Or more to the point…these:

Consumer borrowing has fallen in 15 of the past 16 months as households have struggled with uncertain job prospects and battered finances following a deep recession.

In May, consumers borrowed less on their credit cards and took out fewer auto loans. Credit card borrowing has fallen for 20 straight months.

How does spending and credit fall for that long and President Obama have the gaul to repeatedly say the economy is improving?

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