Here Is Who Is Funding Consumer Credit YTD

Earlier today the Fed announced that consumer credit increased by $6 billion in March, $1 billion greater than expectations, with seasonally adjusted revolving credit increasing by $1.9 billion, only the second time it has grown in the past 31 months (as shown below). Non-revolving credit also increased by $4.1 billion, both number to be trumpeted in the mainstream media, as it means that in March US consumers we using the credit cards once again to lever up. Yet two things that will not be discussed is that non-seasonally adjusted credit declined for the third month in a row to $2,407.5, an $8.9 billion drop M/M, following a $16.5 billion drop in February. But probably more importantly, the question of where all this credit comes from is once again perhaps best answered graphically: second chart below. As usual, thank you Uncle Sam... Which simply means that no banks wish to lend yet again. And yes, the government is and continues to be the only major source of credit (primarily for student and car loans).

Monthly change in seasonally adjusted revolving and non-revolving credit:

And total holders (i.e., sources) of consumer credit year to date:


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