Consumer credit

The past decades have been characterized by easy consumer credit. The figure above represents the monthly amount of credit given out by banks to U.S. consumers since 1943 when the data began to be collected.

Check out the increase in volatility as the 70's began. That's when easy money became the ticking bomb it represents today. Also, that's when Nixon got rid of the Bretton Woods agreement.

This week the market observed the release of August consumer credit figures. It was expected to INCREASE BY $5 BILLION. Instead, it DECREASED BY $7.9 BILLION. Easy money is gone.