Consumer credit outstanding contracted by 10.4% in the month of July according to the Federal Reserve report released yesterday, September 9, 2009.  Not nearly enough attention is being focused on this data.  The July reduction in consumer debt was the largest drop since the Federal Reserve has maintained the records back in 1943.  This supports the comments by Meredith Whitney regarding the questionable nature of an economic recovery in which consumers are spending less and unable to access credit.

In the long term, this may very well be good a transformation for the economy but the in the near future economic growth is not likely to amount to much. 

In the mean time, Treasury rates were mixed to close the day on Wednesday.  The six month Treasury fell two basis points moving from 0.24% down to 0.22%.  The one year Treasury was lower by one basis point to close at 0.40%.  The five year Treasury was unchanged at 2.38%.  The ten year gained one basis point to end at  3.48%.

This week more banks are slightly more aggressive with their CD rate marketing efforts.  In the category of Texas CD rates with a 6 month term there are several banks with rates over 2.00% which is well above the national average.  New York CD rates with terms of two years or less also has a few banks with rates above the best national bank CD rates.  Odd term CDs and regional bank CD rate offers are still presenting the greatest opportunities for the best CD rates.

Tags: , , , , , , , ,

No user commented in " Bank Rates and Consumer Credit "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)