Just a little point to worry about for a Monday….All of this talk of consumer borrowing being up a ton in November doesn’t sound like a good thing to me.  Most of what I’ve seen on this topic talks about it as a sign of economic recovery.

That could be.  I do believe a certain segment of people (the gainfully employed) are making more money now than they did several years ago and consumer debt certainly did go down for a few years.  So you can make the case that this is normal and a sign that we are headed for solid economic recovery.  Consumers using credit to juice the economy.

However, it feels more like consumers still addicted to spending more than they should.  A re-inflating of the bubble or attempt to keep the bubble somewhat inflated.  Something to keep in mind is how big a bubble this was and how long it really takes to work through that and bring things back to normal.  I’m not counting on booming economic times for a long time to come.  If this is a re-inflation or partial re-inflation of the bubble, it will just make it a much longer road.

Todd Kmiec

Todd Kmiec and Associates

todd@toddkmiec.com