While recent reports on U.S. credit seem to be showing strong results, author Shah Gilani warns investors to look deeper into the data, and see the real story. The area providing the biggest boost in new credit is auto-loans, but Gilani points out that these are a wreck waiting to happen, and that lenders aren’t making any money on them. For more on this, continue reading the following article from Money Morning.
In spite of five straight quarters of loosening lending standards and strong U.S. credit growth data, actual loan growth in the U.S. economy is dangerously anemic.
Claim up to $26,000 per W2 Employee
- Billions of dollars in funding available
- Funds are available to U.S. Businesses NOW
- This is not a loan. These tax credits do not need to be repaid
- Whether consumers are willing to add to their existing debt burdens.
- And just how confident they are that they’ll be able to pay any borrowed money back.
- And right now, consumers just aren’t feeling the love.