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

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​Credit Card Rates

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​What can possibly go wrong here?

Mike "Mish" Shedlock