Sunday, February 15, 2009

More on the contraction of total consumer credit

Credit contraction of December 1990-June 1992:

19 months, 16.4 billion

Credit contraction of October 2008-Present:

3 months, 19.8 billion (data through 2008)

This is an interesting data comparison. I note the differing intensities of the contractions as well as the different durations of time (so far). If in 2009 and beyond we combine 2008's rapid rate of loss with 1990's length of time, we would have a nasty result.

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