A month ago we pointed out that with April US consumer savings plunging to levels not seen since Lehman [6], the only place where the tapped out consumer could find some purchasing power is by maxing out their credit cards. This is precisely what happened: moments ago the Fed released its April consumer credit report and it was a doozy: expected to print at $15.00 billion, down from a pre-revision $17.5 billion, the April total instead exploded to a whopping $26.85 billion. This was the fifth biggest surge in history, and was only surpassed by the 2010 "cash for clunkers" record, as well as previous one time outliers in 1998, 2001, and 2006.
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ACTUALLY, this is merely a last ditch spree prior to filing bankruptcy. This is the advice being given by attorney's everywhere.. "Spend as fast as you can before the creditors catch on, and hide as much cash as you can.." I am sure the increase includes Cash Advances.
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