Chart of The Day: Auto + Student loans in the US
Consumer credit running rampant…
Alongside a decline in interest rates (which helped cause it of course)…
US 10-year treasury yield.
So imagine if inflation and ergo rates were to pick up, which it seems to be doing around the world…
Higher rates + (nosebleed levels in student, auto and mortgage debt) = Bad times for a lot of people, which effects will spread to every corner of the economy as well as the banking sector.
