The latest consumer credit report confirmed what we have now known for years: revolving credit remains stagnant at best, with just $2.3 billion in credit card debt added in May, a modest rebound from last month’s $1.4 billion but certainly nowhere near pre-crisis monthly increase levels. Why not? Because US consumers once again found a way to “fungibly” convert non-revolving credit, namely auto and mostly student loans, into purchasing power.
And sure enough, in May another $16.2 billion in non-credit card debt was added, bringing the total monthly increase to $18.55 billion, above the $16 billion consensus.
This post was published at Zero Hedge on Jul 8, 2016.
Follow on Twitter
Recent Comments