The era of the more frugal U.S. consumer continued in December as total consumer debt fell by $1.73 billion, marking the 11th straight monthly decline, the U.S. Federal Reserve said Friday. There’s no doubt that Americans are getting serious about paying down credit card balances and other debt. Continue reading U.S. Consumer Credit Falls for 11th Straight Month U.S. Consumer Credit Falls for 11th Straight Month originally appeared on DailyFinance on Fri, 05 Feb 2010 13:56:00. Filed Under: Economy , Credit Permalink | Tweet this! | Comments

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U.S. Consumer Credit Falls for 11th Straight Month

Filed under: Economy , Investing As debt mounts in both the U.S. and U.K., the drums are getting a bit louder at Moody’s. The credit rating agency is warning both countries to get their debt under control. Yet only under the most pessimistic scenario does the agency think the U.S. could possibly lose its top rating by 2013. In its latest report, Moody’s looks at the 17 countries with its highest Aaa rating and lets those on the edge know that improvement in debt management should start in the next two years . Continue reading Moody’s keeps the Aaa rating pressure on the U.S. and U.K. Moody’s keeps the Aaa rating pressure on the U.S. and U.K. originally appeared on DailyFinance on Tue, 08 Dec 2009 11:30:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Moody’s keeps the Aaa rating pressure on the U.S. and U.K.

Filed under: Economy , Investing I have to hand it to FDIC Chairwoman Sheila Bair — the former UMass economics professor gets it right on key policy issues. She is right about ending the doctrine of too-big-to-fail , and now she is proposing an idea that I’ve been pushing with no effect for years. That idea is to align the interests of the banks that bundle assets and sell them as securities — so-called asset-backed securities — with those of ABS investors. Before getting into the details of her proposal, I should disclose that I am not entirely objective in analyzing it. I worked with the FDIC back in the early 1980s to help build a system to manage the liquidation of the assets the FDIC gets when it helps find partners to absorb failed banks. And I have posted repeatedly about the idea of putting bankers’ pay in escrow as a way to align the interests of those who create investments with those who buy them. Continue reading FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives originally appeared on DailyFinance on Sun, 22 Nov 2009 14:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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FDIC Chair Sheila Bair has it right: It’s time to change bankers’ incentives