After the financial crash of 2008-09, the financial media claimed that “nobody could have possibly seen it coming”.
I am sure you will hear the same thing when this credit bubble pops. But you can clearly see it coming from a mile away.
Presenting the total loans owned by the Federal government as disclosed in the Fed’s monthly G.19 statement on consumer credit – from $100 billion in 2008 this number is now almost $1 trillion.
First, the bulk of US “government-held” has gone into auto loans, which as shown in the chart below, not only have surpassed total credit card (revolving) debt, but as of Sept. 30 just topped the credit card debt held by US consumer at the peak of the last bubble when housing was at all time highs, and consumers “charged it” like there was no tomorrow.
And then, of course, there is the outrageous Obama student loan bubble.
And now you’ve “seen it coming.”