Bernanke money printing is working its way into the consumer sector---a very significant price inflation warning.
U.S. consumers ramped up borrowing in December. Consumer debt outstanding rose at a seasonally adjusted annual rate of 9.3% from November to $2.498 trillion, reports WSJ. Behind that was a seasonally adjusted 11.8% rise in nonrevolving credit, which includes car and student loans. Revolving credit, mainly credit-card debt, climbed a seasonally adjusted 4.1% in December from the previous month.
Student loans are clearly a new manipulated boom sector, like subprime housing was. With price inflation just around the corner U.S. debt is not a very smart investment, but student loan paper is a really dumb investment.
Consumer credit does not include mortgages, correct?
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