A little over a week ago, when looking at the latest consumer credit data from the Federal Reserve, we were shocked to learn that in March, credit card debt soared by a record $52.4 billion, the biggest monthly increase on record and more than double the expected change.
AKA, the American consumer is approaching maximum credit saturation.
While it is traditionally viewed as a B-grade indicator, the February consumer credit report from the Federal Reserve was an absolute stunner and confirmed what we have been saying for month: any excess savings accumulated by the US middle class are long gone, and in their place Americans have unleashed a credit-card fueled spending spree.
Here are the shocking numbers: in November, consumer credit exploded by a whopping $41.8 billion, more than double the expected $18.1 billion print, nearly five times more than the upward revised $8.9 billion January number (revised from $6.8 billion), the highest on record!
Still no sign of a rebound:
Home prices rising about 6% annually and loans now growing at under 4% annually looks in line with at best flat housing sales:
Looks like the blip up as hurricane destroyed vehicles were replaced has run its course:
This had looked like it peaked a couple of years ago, but since went back up to new highs:
By Warren Mosler | Investment Watch Blog