Consumer borrowing is increasing at an unprecedented rate…Using credit to chase inflation

Loan-to-deposit ratio has seen the sharpest rise since the 1990s

This is the result of consumer borrowing increasing at an unprecedented pace pic.twitter.com/gKl61K9iQN

— Game of Trades (@GameofTrades_) June 29, 2023

“We’re in an inflationary debt bubble, meaning that consumers are using credit to chase inflation. Based on the assumption that interest rates are coming down soon.

Rates can only come down if consumers delever and/or asset markets crash.”

We're in an inflationary debt bubble, meaning that consumers are using credit to chase inflation. Based on the assumption that interest rates are coming down soon.

Rates can only come down if consumers delever and/or asset markets crash. pic.twitter.com/mUER4nSBdb

— Mac10 (@SuburbanDrone) June 29, 2023