Robert Murphy has one of the most scary graphs in the history of monetary policy posted on his blog (apologiez for hot-linking) :
The hyperinflationists should drool at this one - so did I, but then I digged a bit deeper and found what it's all about. Consumer loans are, in fact, not increasing at all. What instead happened is this :
The hyperinflationists should drool at this one - so did I, but then I digged a bit deeper and found what it's all about. Consumer loans are, in fact, not increasing at all. What instead happened is this :
Someone liquidated a gargantuan pool of securitized consumer loans, I have no idea why or which (student loans taken over by govt? second lien mortgage loans?), but basically consumer loans are in fact not increasing, it simply follows that the CONSUMER series did not include securitized loans, rather only loans that were found directly on bank balance sheets. When the above securitized loans disappeared from the TOTALSEC series, they showed up in the CONSUMER series instead.
If someone who knows more about the funny statistical methods of the St. Louis Federal Reserve would like to dig deeper and possibly correct me, then it would be much appreciated.
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