Bathroom Plasma, No More: Consumer Credit

Position: Short US Consumer Discretionary (XLY)

 

From Parts Unknown (our new Sector Head for Financials who we have yet to announce)…

 

Here’s a look graphically at Consumer Credit (updated for today’s 3pm data).

 

If a picture tells 1,000 words, then the song remains the same. It’s the second chart that’s actually more telling though. A full year after Lehman revolving credit is grinding to a halt at the second fastest rate in the last 12 months.

 

Further evidence that the consumer is (a) getting weaned off easy money by the still cash-strapped banking system, (b) voluntarily electing to save in lieu of buying the plasma for the 3rd bathroom.

 

Keith R. McCullough
Chief Executive Officer

 

Bathroom Plasma, No More: Consumer Credit - JS1

 

Bathroom Plasma, No More: Consumer Credit - JS2

 

 


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