Consumer confidence sinks lower the RBC Cash Index falls to its lowest level since it was created in 2002, and consumer borrowing tumbles, rising at an annual rate of 2.1%, the lowest rate since April.

On a “beat my own drum” note, it’s nice seeing a real economist warning that the stimulus package is going to damage Fannie Mae and Freddie Mack by increasing the loan limits, and hence exposure. I warned about this yesterday, and it’s nice to see a real economist agree.

In high finance, it looks like there will be significant writedowns on the $160 billion of “pier” loans out in finance land.

Basically, a “pier loan” is a bridge loan for things like a private equity transaction where the banks cannot sell the debt, and hence it’s a “bridge to nowhere”, or a “pier”.

The average price for the most actively traded U.S. loans fell to 88.37 cents on the dollar this week, from 91.14 cents last month, according to S&P’s LCD. Prices have fallen from 100, or face value, last June.

This means that no one is interested in buying the loans, so they have to discount.

Finally, look at these charts on The Financial Ninja, and be very, very afraid.