Do days of wine and roses lead to bleeding hangovers?greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Washington, Oct. 7 (Bloomberg) -- U.S. consumer borrowing grew in August by the largest amount in seven months as spending by Americans showed little sign of abating, Federal Reserve figures showed today.
Borrowing rose by $10.8 billion in August to a total of $1.37 trillion. The increase was bigger than the $6.6 billion expected by analysts and follows a gain of $8.9 billion in July. The Fed originally reported July borrowing had risen $8.8 billion.
The increase means consumer debt grew at an annual rate of 9.6 percent in August, compared with 7.9 percent in July and 5.4 percent in 1998. And shoppers were still packing store aisles in September: sales at retail chains rose a higher-than-expected 6.7 percent from a year earlier, a private industry report showed today. Some of the strongest gains were posted by Limited Inc. and BJ's Wholesale Club Inc.
``The shopping spree will not let up,'' said Don Hilber, an economist at Wells Fargo & Co. in Minneapolis.
``If this continues to mount at this pace, we could have troubles because consumers are going to have to catch up and pay up their debt,'' said Astrid Adolfson, an economist at MCM MoneyWatch in New York. ``So it could lead to slower spending ahead.''
Slower spending ahead? Yeah, I think that is a safe bet. Lots of folks in debt up past the eyebrows, and digging deeper. How big of a bump in the road is it going to take to knock a whole lot of people off of the wagon?
-- Uncle Deedah (firstname.lastname@example.org), October 07, 1999
Looks like the Y2K preppers are finally showing up on the Fed's figures. BJ's wholesale club is not a place I used to shop 'till I dropped before I was aware of Y2K, especially not in August.
Bet ya the shopping spree not only won't let up, but will spike a lot more. Feds haven't seen nottin' yet.
-- (email@example.com), October 07, 1999.
A whole lotta people spendin w/o ANY intention of payin it back.
-- Porky (Porky@in.cellblockD), October 07, 1999.
NOT TRUE, Porky. I just intend to pay it back with inflated 2000 dollars.
-- jes a broke footballer (firstname.lastname@example.org), October 08, 1999.
Touche' Night Train. (Usta drink Night Train, '99' was a very good year).
-- Porky (Porky@in.cellblockD), October 08, 1999.
Well, I'd rather have the goods and have to juggle money than have money or (maybe) credit and not be able to find needed goods.
I've run up cards. If it ain't too bad, they will be paid off, expenses next year will be pretty light [G]
If it is moderately bad, well, I've juggled bills MANY times in the past. Tighten the old belt, make do, maybe try for a second job.
If it is really bad, well, there are too many ways that can go to speculate. I've planned as best I can.
We won't be at the store scrabbling for the last pair of Nikes.
-- mushroom (email@example.com), October 08, 1999.