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July 9, 2018 | Consumer Credit +7.5%, Revolving Credit +11.5%, Non-Revolving +6.25% YoY

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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.

New Auto Loan Rates

​Credit Card Rates

​What can possibly go wrong here?

Mike “Mish” Shedlock

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July 9th, 2018

Posted In: Mish Talk

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