by Lee Adler
Wall Street Examiner
Lending not related to financing securities holdings continues to soar, reaching another new high in July. The growth rate of loans excluding repo and other loans on securities collateral continues to hover around 8%, where it has been since Q3 of 2015.
The credit bubble has actually heated up since July 2015. The economy slowed over the same period. The data we collect in real time on Federal tax revenues (updated Pro Trader Federal Revenues later this week) told us that the economy had slowed and subsequent, revised GDP data has confirmed that. However, July tax collections have rebounded strongly, suggesting that the US economy may be heating up. If this trend persists, it will encourage the Fed to tighten, and would possibly lead to an uptick in the lagging and suppressed official gauges of inflation.