Consumer Credit Falls In August As Credit Crunch Hits Main Street

Consumer Credit dropped in August for the first time in more than a decade. Govenment data showed that consumer credit fell by $7.9 billion in August to $2.58 trillion. Economists were looking for a rise of $5 billion. The report doesn't include real estate borrowing.

The drop in August consumer credit underscores the 'Main Street' impact of the credit crunch. It likely got much much worse in September and now in October, as banks hoard cash.

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