The latest consumer credit report confirmed what we have now known for years: revolving credit remains stagnant at best, with just $2.3 billion in credit card debt added in May, a modest rebound from last month's $1.4 billion but certainly nowhere near pre-crisis monthly increase levels. Why not? Because US consumers once again found a way to "fungibly" convert non-revolving credit, namely auto and mostly student loans, into purchasing power.
And sure enough, in May another $16.2 billion in non-credit card debt was added, bringing the total monthly increase to $18.55 billion, above the $16 billion consensus.
What this means is that for one more month Americans became even more encumbered by record amounts of student debt and car loans.
Finally, when it comes to the all too generous sources of consumer credit, one entity sticks out.