What’s the best way to prepare for the upcoming financial crisis? If you’re an American consumer, it’s probably to take on more debt. Like, say, $4.4 billion more in debt in May, according to a MarketWatch story.
Overall consumer debt jumped up by 2.4% in May to $2.173 trillion. The culprit? Rising credit card debt, due in part to astronomical fuel prices as well as skyrocketing housing costs. Revolving credit — like credit cards – expanded by a whopping 10% in May. That’s an additional $6.7 billion in outstanding revolving debt to bring the standing total to $812 billion. Non-revolving debt actually fell 2% in May.
The increase in consumer credit was about $1 billion more than economists were expecting. In a survey conducted by MarketWatch, analysts expected a credit expansion of $3.4 billion for May.
Source: MarketWatch
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Thursday, July 13, 2006
Wednesday, July 05, 2006
More States Follow California's Lead to Protect Car Buyers
- CA's new "Car Buyer's Bill of Rights" goes into effect July 1
- Provides option to return used car for any reason within 2 days
- Caps dealer service markup fee at 2.5%, more clearly defines term "certified"
- Similar legislation pending in MA; LA, AK, NY, NC also considering more protection
- Consumer advocates say new CA law doesn't go far enough
- Claim dealers will profit from changes like fees for return option, restocking
Significant Points
- Legislation sparked by consumer complaints about unscrupulous auto dealers
- Consumer advocates say minorities targeted by extra dealer markups, add-on charges
- Also cite "certified" preowned vehicles w/ frame damage, other problems
- Consumers for Auto Reliability and Safety: "What we ended up with was very watered down"
- CARS president Rosemary Shahan: "We're not touting this bill as a model"
- CA dealers disagree, say law represents "most comprehensive reform of the car buying process in the last several years"
Click Here for Full Digest and Source Article: http://www.automotivedigest.com/view_art.asp?articlesID=19507
Sourced From: The Wall Street Journal, June 27, 2006
Tuesday, July 04, 2006
Market Rallies as Fed Cools Inflation Language
Situation
1. Fed raised interest rates for 17th consecutive time to 5.25%
2. But market rallies as Fed appears to suggest continued rate raises may not be necessary
3. Tone of remarks less urgent, acknowledge slowing growth
4. Left room to raise rates at next meeting; inflation still above Fed's "comfort zone"
5. Convinced that harder to combat inflation than to correct slowdown if rates pushed too high
6. Some say energy prices, higher interest rates already setting stage for serious slowdown
Significant Points
1. Slower growth due to cooling of housing market, previous interest rate hikes, energy prices
2. GDP rose at 5.6% annual rate in 1st Q, but 2 inflation gauges lowered
3. Jobless claims up as rate of job creation declines
4. Unsold home inventories up, sales prices rising more slowly, construction employment down sharply
5. National Association of Manufacturers says "Evidence of a slowing economy is widespread"
6. Investors looking for signs that Fed can engineer "soft landing" to era of slower growth
Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=19513 Sourced From: The Wall Street Journal, June 29, 2006; The New York Times, June 30, 2006
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1. Fed raised interest rates for 17th consecutive time to 5.25%
2. But market rallies as Fed appears to suggest continued rate raises may not be necessary
3. Tone of remarks less urgent, acknowledge slowing growth
4. Left room to raise rates at next meeting; inflation still above Fed's "comfort zone"
5. Convinced that harder to combat inflation than to correct slowdown if rates pushed too high
6. Some say energy prices, higher interest rates already setting stage for serious slowdown
Significant Points
1. Slower growth due to cooling of housing market, previous interest rate hikes, energy prices
2. GDP rose at 5.6% annual rate in 1st Q, but 2 inflation gauges lowered
3. Jobless claims up as rate of job creation declines
4. Unsold home inventories up, sales prices rising more slowly, construction employment down sharply
5. National Association of Manufacturers says "Evidence of a slowing economy is widespread"
6. Investors looking for signs that Fed can engineer "soft landing" to era of slower growth
Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=19513 Sourced From: The Wall Street Journal, June 29, 2006; The New York Times, June 30, 2006
Get Top Dollar For Your Auto Paper. Sell your buy here pay here auto notes for cash now.
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Russell Crosby
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