The Federal Reserve reported a rise in consumer credit this afternoon, but as I’ve noted in past months, this data is entirely skewed by the newly added Federal Government student loan program which has given recent consumer credit data the appearance of a significant improvement. If you back out this newly added data you actually get a continuation in the negative trend in consumer credit with a month on month decline of $1.6B. Year over year the figure is still dropping 5.6%. It’s not a pretty picture out there despite the government’s efforts to right the ship.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.