Featured Post

Clearly, Not Everyone Is Getting Rich Off The Stock Market

Well, the NY Fed was out today with its Quarterly Report on Household Debt and Credit for Q4 2017. Clearly, Americans are in a lot of debt. Take a look.


Just a couple of quick hits from the report. Total U.S. household debt rose $193 billion in the 4th quarter, to a new all-time peak of $13.15 trillion. That's 17.9% above the most recent trough in Q2 2013. Broken down by segment, what do you suppose was the largest gain in percentage terms? Credit cards, with a 3.2% increase. In the picture above, the widening gap represented by the red arrows reflects the fact that non-housing debt is rising at a faster pace than housing debt.

Here's what's troubling about that. Below is a picture of the stock market, as represented by the S&P 500 index, over that same period; from the most recent credit trough in Q2 2013 to the end of 2017.


And thus, the title of this article. Over that period, the S&P 500 index rose by 75%; from roughly 1,600 to 2,800. Apparently, however, the riding tide did not lift all boats. One would think that, burned by the financial crisis of 2008-2009 and riding a wave of profits from the stock market, U.S. households would have been both eager and able to trim those debt levels. Perhaps some did, but clearly not all. And that is troubling, because it means the bulk of those gains have ended up in the hands of a few, while many continue to struggle.

But more than that, we've recently seen the first solid hints of inflation, and rising interest rates. In the main, it was this threat that led to last week's violent action in the markets.

Lots of debt colliding with rising interest rates. It's a challenge the U.S. government will face. But so, apparently, will many U.S. households.




Comments

  1. I just want to give a quick advise to any one out there that is having difficulty in his or her relationship to contact Dr.Agbazara because he is the only one that is capable to bring back broken relationship or broken marriages within time limit of 48 hours with his spiritual powers. You can contact Dr.Agbazara by writing him through his email at ( agbazara@gmail.com ) OR call/WhatsApp him on +2348104102662, in any situation of life you find your self.

    ReplyDelete
  2. First of all thanks to Dr.Agbazara for bringing back my lover to me within 48 hour. I have nothing to say than to Thank you and to let you know that i am happy.. My Lover treats me better and he spends most of her time with me now telling me how much he loves me than ever before.. If you have any problems with your lover contact Dr.Agbazara via email: ( agbazara@gmail.com ) or WhatsApp +2348104102662 because he is the solution to every relationship problems

    ReplyDelete
  3. I'm here to share a few story on how I save my marriage from going through a divorce, it all started when I find out that my husband was cheating on me and I already have two kids for him, so I don't want the marriage to be broken because if that happens it will be a big load on me taking care of the kids alone for that not to happen, I went searching for solution to make him love me again and stop cheating that is how I came across Dr Ekpen online on what he has done for a lot of people so I contacted him for help and he helped me to cast a love spell on him to love only me and stop cheating. You can contact him today if you are having the same challenges in your relationship on ekpentemple@gmail.com and you will be clad you did.

    ReplyDelete
  4. In our simple life, love plays a very specific role. Now we are able to make your love life healthy and no space for any type of trouble. These all are possible with the help of Dr. EKPEN of SOLUTION TEMPLE. He helped me cast a spell that brought my long lost lover back within 48hours who left me for another woman. You can also contact him on (EKPENTEMPLE@GMAIL.COM) and be happy forever like am now with his experience.

    ReplyDelete
  5. Mr Pedro went above and beyond their requirements to assist me with my loan which I used to expand my pharmacy business,They were friendly, professional, and absolute gems to work with.I will recommend anyone looking for loan to contact. pedroloanss@gmail.com.WhatsApp ..+ 1-863-231-0632.

    ReplyDelete

Post a Comment

Popular posts from this blog

Here's What It Takes To Afford The Median Home In San Francisco

Best iShares ETFs - A Core Portfolio For Fidelity Brokerage Clients