Total consumer credit fell $15.7B in April. This was twice as much as analysts expected and the March revision was a staggering $16.6B. This was the largest drop since the Fed began tracking consumer credit. Total consumer credit outstanding is $2.52T. It’s very hard to imagine a sharp economic rebound with the consumer on the ropes like this. As we’ve mentioned before the reflation trade is certainly beginning to show some chinks in the armor.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.