Banks lending: Credit markets [collapsed] at the astonishing pace of $856.4 billion per year, their biggest cutback of all time (line 7).
Nonbank lending: (line 8.0) pulled out at the annual rate of $468 billion, also the worst on record.
Mortgage lenders: (line 9) pulled out for a third straight month. (Their worst on record was in the prior quarter.)
Consumers: (line 10) were shoved out of the market for credit at the annual pace of $90.7 billion, the worst on record.
The ONLY major player still borrowing money in big amounts was the United States Treasury Department (line 3), sopping up $1,442.8 billion of the credit available — and leaving LESS than nothing for the private sector as a whole.
Weiss goes on to say in his flamboyant style:
• Asset-backed securities (ABS) got hit even harder.
• US security brokers and dealers were smashed.
• Government agencies got killed.
• Mortgages got chopped again.
• Trade credit is dying.
In U.S. households alone, the losses have been massive: $1.39 trillion in the third and fourth quarters of 2007 (not shown on page 105) … a gigantic $10.89 trillion in 2008 …$1.33 trillion in the first quarter of 2009 … $13.87 trillion in all, by far the worst of all time.
• Deep cutbacks in consumer spending ahead, plus a virtual disappearance of conspicuous consumption …
• More massive sales declines at most of America’s giant manufacturers, retail firms, transportation companies, restaurants, and more, plus …
Then, in this morning’s Wall Street Journal was the employment report:
Big losses replacing profits at most U.S. corporations!
*Mike "Mish" Shedlock, http://www.globaleconomicanalysis.blogspot.com/
**Martin D. Weiss, Ph.D., http://www.moneyandmarkets.com