If there was any confusion where all those soaring new car sales are coming from, we now have the definitive answer: moments ago the latest consumer credit data for September was released, and surging by $28.9 billion - a 4.9% jump Y/Y - not only did this smash expectations of a "modest" $18 billion rise, this was the biggest monthly increase ever!
And while revolving credit rose a respectable $2.7 billion to $925 billion, still well below its historic high of $1.02 trillion...
... the monthly swing was all in the non-revolving credit, i.e., the student and car loans: soaring by $22.2 billion, this was the second biggest monthly jump on record.
The source? Drumroll - the US government, which on one hand laments the credit bubble it has created via ZIRP and QE and is eager to raise rates by 25 bps, and on the other is directly funding the biggest student and car debt bubble in history.
Presenting: the government bubble in all its glory.