Credit This

   News Item: Consumer credit increased at an annual rate of 8.25 percent in May, up from an annualized increase of 4.6 percent in April, according to new data from the Federal Reserve. Total consumer debt reached $2.795 trillion in May, up from $2.776 trillion in April. Depository institutions held the most, at $1.2 trillion, followed by finance companies, with $675.7 billion, the Fed said.
   The nationwide average interest rate for credit cards was 11.95 percent, and for new car loans, the average was 4.13 percent for four years, according to the Fed.
   So it would seem that despite all the chanting for cutbacks, Americans are spending more, and going into debt to do it. Moreover, with finance institutions able to acquire funds at a rate of less than 1 percent, and lending at more than 4 percent for auto loans and mortgages, plus 12 percent for credit card users (or double that for some), demands for austerity become suspect, as do claims that banks are suffering. If bankers are suffering, consider that it's more likely from poor management than from narrow margins between acquisition rates and lending rates.