The Fed's Consumer Credit Report for May shines a bright spotlight on a huge problem.
In May, consumer credit increased at a seasonally adjusted annual rate of 7-1/2 percent. Revolving credit increased at an annual rate of 11-1/2 percent, while non-revolving credit increased at an annual rate of 6-1/4 percent.
To keep consumption up, consumers must borrow more and more. And rates keep going up.
New Auto Loan Rates
Credit Card Rates
What can possibly go wrong here?
Mike "Mish" Shedlock