Surfing around I came across this little noticed post over at the Wall Street Pit. Consumer lending hit an all time high in March . Literally I couldn't believe their graphs posted. But, it's true! Firstly, here is the Federal Reserve data release, H8: Selected Assets and Liabilities of Commercial Banks in the United States. Secondly, here are the graphs on Consumer Lending by Commercial Banks.
Check out that all time monthly change in consumer loans. What the hell happened?
Yet on all Business Loans, the main graphs shows credit is still tight:
But at large banks, there is a slight increase in business loans:
I scratched my head, wondering what is happening here and then it dawned on me. I got an automatic credit limit increase on a bunch of credit cards. I didn't ask for it, they just did it! Sure enough, from the Federal Reserve data, revolving credit went from $321.1 billion $396.7 billion in a month. That's a 19% increase in just one month on revolving credit. All consumer loans, which includes revolving credit (credit cards), had a similar jump, 9.22%.
So, who wants to bet we're going to have a larger C, consumer spending, in GDP real soon, brought to you by Visa and MasterCard? (ignore that D funding it, we'll just sweep that one under the rug with all of the other debt).