I was purusing through Jesse’s Cafe Americain and this story jumped out at me. “Americans’ debt back at record high after nearly a decade.”
Americans’ debt level reached a record high this year, surpassing the peak touched just as the worst of the recession was taking hold in 2008, and marking a milestone for households that now lean less on mortgages and more on auto and student loans.
Total U.S. household debt was $12.73 trillion at the end of the first quarter of 2017, up $473 billion from a year ago, according to a Federal Reserve Bank of New York survey released on Wednesday.
Total indebtedness is now 14 percent above the 2013 trough of household deleveraging brought on by the 2007-2009 financial crisis and Great Recession. The previous peak, in the third quarter of 2008, was $12.68 trillion, and the New York Fed stressed that the pull-back since then marked an “aberration” from what had been a 63-year upward trend in household debt.
Liquidity moves markets!Click here to learn how you can follow the money.
Chart from the New York Fed: https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2017Q1.pdf
But in terms of change, student and auto loans are the leading debt products.
Here is household and nonprofit organization debt.
If we compare YoY growth in household debt compared to YoY growth since 2014, you can see that YoY earnings growth for production and non-supervisory employees (blue line) is growing at a slower rate than YoY household debt growth (red line).
I wish I had a GIF of Janet Yellen with a tea bag, but April Ludgate will do!
Wall Street Examiner Disclaimer:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am also a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases promotional consideration is paid on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.