Monday, May 7, 2012

The Bernanke/Obama Thing: Consumer Credit Surges Again in March

In March, consumer credit increased at an annual rate of 10-1/4 percent. For the first quarter, consumer credit increased at an annual rate of 7-3/4 percent. Revolving credit was little changed, while nonrevolving credit increased at an annual rate of 11-1/2 percent.

Non-revolving debt such as auto loans, personal loans and student loans combined for a $48.2 billion jump in Q1. Credit card debt for the same period was essentially flat at $-0.6 billion

Bottom line: Non-revolving consumer credit is playing a significant role in overall money growth. Overall money growth came in at $131 billion for the quarter.

In other words, Obama/Bernanke are shoveling money to car buyers and students, i.e., auto union workers and the college education industry.

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