At some point private debt becomes unsustainable by income. There is nothing in the report to suggest that this point is closely approaching from the household side, however, although there has been some noise about rising corporate debt and its quality.
NY Fed Q1 Report: "Total Household Debt Rises for 19th Straight Quarter, Now Nearly $1 Trillion Above Previous Peak"
Bill McBride
2 comments:
When you say “rising corporate debt and it’s quality” are you referring to corporate debt in form of loans from banks or in the form of bonds issued to investors? Sometimes I’ve seen some Economics writers use those two types of debt interchangeably which I think is wrong.
This Fed chart shows household debt service costs are still a bit below the historical average.
https://fred.stlouisfed.org/series/TDSP
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