Consumer Credit +7.5%, Revolving Credit +11.5%, Non-Revolving +6.25% YoY
Year-over-year expansion of consumer credit continues unabated. It's the only way people can "afford" to buy things.
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.
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What can possibly go wrong here?
Mike "Mish" Shedlock