Has the Fed succeeded?

The Z1 report for Q2 2012 is less disastrous than most of the recent reports.  But the financial powers that be are still having to paper over the gap in private credit with federal credit.  Here is the quarterly change in credit outstanding in the various sectors.

  • +0.36% Household
  • +1.08% Financial
  • +0.99% Corporate
  • +1.83% Federal
  • -0.34% State and Local
  • +0.82% Total

So private credit is growing again, but $198.2 of the $447.3 billion increase in total credit was federal.  And at 0.8 percent, total credit growth was still well short of the 2.4 percent average quarterly increase prior to 2008.  Conclusion: this was probably the last minor hurrah before the decline begins again in Q3.