Tag Archives: Consumer Debt

Shocking Consumer Credit Numbers: Credit Card Debt Soars With Savings Long Gone

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!

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Mid-November Chart Check

Still no sign of a rebound:

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Home prices rising about 6% annually and loans now growing at under 4% annually looks in line with at best flat housing sales:

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Looks like the blip up as hurricane destroyed vehicles were replaced has run its course:

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This had looked like it peaked a couple of years ago, but since went back up to new highs:

https://i0.wp.com/moslereconomics.com/wp-content/uploads/2017/11/111007.png

By Warren Mosler | Investment Watch Blog