Of course credit card debt and mortgages and car loans are up, because prices are higher. But income is up too, (recently)- “Although household balances continue to rise in nominal terms, growth in income has outpaced debt,” said Donghoon Lee, Economic Research Advisor at the New York Fed."
As for the 3.5% delinquency rate, I saw a graph last week (don't remember the source) showing that 3.5% is historically rather low. So the Fed is right - the economy is doing alright. (so far) - but I agree that there's a reckoning or a reset coming...
Of course credit card debt and mortgages and car loans are up, because prices are higher. But income is up too, (recently)- “Although household balances continue to rise in nominal terms, growth in income has outpaced debt,” said Donghoon Lee, Economic Research Advisor at the New York Fed."
As for the 3.5% delinquency rate, I saw a graph last week (don't remember the source) showing that 3.5% is historically rather low. So the Fed is right - the economy is doing alright. (so far) - but I agree that there's a reckoning or a reset coming...