Increase in Consumer Spending Expressedin Borrowed Dollars

How can we cheer the fact that more Americans are going deeper into debt?  That is exactly what the news is doing in trumpeting increased consumer spending.  The American Bankruptcy Institute provides a summary and link to further information.

CONSUMER CREDIT SURGES BY MOST SINCE 2001

U.S. consumer credit surged 10 percent in November, its biggest jump in a decade in a positive signal for the economy as consumers tapped their credit cards and the government doled out more student loans, Reuters reported yesterday. Outstanding consumer credit increased by $20.37 billion during the month, the Federal Reserve reported yesterday. Revolving credit, which mostly measures credit card use, rose $5.60 billion, a third straight monthly increase. The increase in consumer credit was the 13th in 14 months and the biggest jump since creditors boosted lending in the wake of the September 11, 2001, attacks in New York and Washington. Nonrevolving credit, which includes student and auto loans, rose a seasonally adjusted $14.78 billion in November. Read more.