US Consumer Credit Increases Yet Again

Originally posted in our forum and moved here:

Forget about the fact you can’t afford the new car or couch, that hasn’t stopped Americans from spending way more than they earn. US consumer credit rose by a bigger-than-expected $10.27 billion in June on a surge in credit card debt, said a Federal Reserve Report.

Consumer credit outstanding rose to $2.186 trillion in June, rising at a 5.66 percent annual rate from $2.176 trillion the prior month. Revolving credit, which includes credit and charge cards, rose by an annual 9.80 percent rate in June to $820.65 billion after a 11.04 percent surge a month earlier.

Non-revolving credit — closed-end loans for cars, boats, education expenses and holidays — rose 3.19 percent to $1.366 trillion in June after slipping 1.35 percent the prior month.

This just in, take control of your finances and stop using bad credit to your spending splurges, it will help you in the long run!

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Canadian Trust Funds Explained – Trust Funds 101

Here are tidbits on trust funds:

What is a trust?: A company with a special legal structure that allows it to pass profits on to the people who own it without having to pay corporate taxes.

It’s a kind of corporate security similar to a share in a company.

A share of an income trust is called a “unit” and investors can buy and sell them like stocks — via a broker or discount brokerage.

Advantage: By paying little or no corporate taxes, the company can pass on more cash to its owners. Companies pay most of this cash to investors in monthly distributions.

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Canada in Foreign Exchange News: August 13-August 18

I thought I’d keep our readers up-to-date with the latest currency news for North America. Here is the week in review.

Standup Economist – Comedian?

How many times do you see a stand up economist comedian? That just doesn’t mix. Only funny to economists so beware.

Coinage Materials Modernization Act of 2007

Congressman Luis Gutierrez, Chairman of the Subcommittee on Domestic and International Monetary Policy, Trade and Technology, and Financial Services Committee Chairman Barney Frank have introduced H.R. 3330, the “Coinage Materials Modernization Act of 2007.” The bill will authorize the Secretary of the Treasury to change the composition of coins issued by the U.S. Mint to less expensive materials. The Treasury Department estimates that changing the composition of pennies and nickels will save the government over $100 million a year. By making similar changes to the half dollar, quarter and dime, the government can save as much as $400 million annually.

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Mankiw on China and US Trade

An interesting blog post on why China will become the second biggest trading partner with US displacing Canada and why the US can impose tariffs to slow what appears to be a financial bubble bulge.

Mankiw 1028 economists

PEARSON to Appeal Overzealous Drycleaner Claim

I’m sure we’ve all heard about the nutter lawyer who sued a poor Korean family for lost pants in their drycleaner. The overzealous lawyer lost his 100+ million dollar lawsuit. it now seems some people are fighting back because PEARSON IS GOING TO APPEAL!

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Canadian Fuel Efficient Rebate Yet to Arrive

The feds in Canada have promised cheques for those who invest in fuel-efficient cars and trucks. The problem? 2006 and 07 buyers have yet to cash in.

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Mankiw v Blinder Round 2 – Offshore outsourcing

Mike Moffat (writer at wrote a blog (and posted his thoughts) on a economic ‘feud’ between econ giants Greg Mankiw and Alan Blinder.

Here is the initial article from Blinder and the Washington Post article here. The rebuttal from Mankiw on his personal blog. The blog argument continues there. Moffat writes about it here.

Treasury Depart. Comments on Hedge Funds and Systemic Risk

Here are some excerpts from the comments made by Under Secretary for Domestic Finance Robert K. Steel to the house of Representatives financial services committee.

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