Why Stocks Are Crashing Late Today: Credit in the U.S. Drops Most on Record

Comsumer credit for February was just reported as having dropped $7.48B by Reuters (or $11B my Marketwatch), or at an annual rate of 3.5%, compared with analysts estimates of a $1B drop. That is a huge difference.

In addition, Kansas City Fed President Thomas Hoenig advocated a hike in interest rates.

"Non-revolving credit, which includes closed-end loans for big-ticket items like cars, boats, college educations and holidays, rose $313 million, or at a 0.2 percent rate. However, revolving credit, made up of credit and charge cards, plunged at a 9.7 percent rate, or $7.79 billion in February, the largest dollar drop since the Fed started tracking the series in 1968.

In percentage terms, the 9.7 percent decline was the biggest since January 1978, when it dropped 15.7 percent".

It's coming, any day now the house of cards will fall.