Total US Credit and Loans have now contracted by $979 billion since their peak in October 2008:

The annual growth rate has turned negative for the first time since beginning of the the weekly recordings, and and as far as I could find now posts the biggest annual decline since the great depression:

Keep in mind that all this has happened in spite of an environment of renewed optimism and confidence that the economy will bounce back hard.

The biggest surprises and catastrophes always occur when public opinion is completely out of whack with reality. Now is such a situation. How much longer it will last no one knows. But rest assured that a double dip is on the horizon…

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