| I had no idea Americans had so much debt.
A Federal Reserve report shows how much we owe … and it’s a pretty lofty total.
Today, I dive into our debt crisis, the FTX/crypto debacle and share some other items that caught my attention this week.
If you have ideas on any analysis you’d like to see, drop me an email at Feedback@MoneyAndMarkets.com.
Keep scrolling to read on.
| Wealthy entrepreneur says after watching crypto the exchange go bust, U.K. pension system crisis and many stocks fall by 95%, here's what coming next… | |
We Owe How Much??? Every quarter, the Federal Reserve Bank of New York looks at just how much Americans are in debt.
After the third-quarter release this week, I can tell you … it’s a lot.
The report looks at both housing (mortgages) and nonhousing (credit cards and auto loans) debt:  (Click here to view larger image.) Total household debt jumped $351 billion, or 2.2%, from July 2022 to September 2022. - Household debt rose $282 billion.
- Nonhousehold debt climbed $69 billion.
Debt increased 15% across the board — the fastest pace in 15 years. Both mortgage balances and credit card usage exploded.
Total debt hit $16.5 trillion — up 8.3% year over year.
As I said, we owe a lot.
What they said: “Credit card, mortgage and auto loan balances continue to increase in the third quarter of 2022 reflecting a combination of robust consumer demand and higher prices. However, new mortgage originations have slowed to pre-pandemic levels amid rising interest rates.”
— Donghoon Lee, New York Fed economic research advisor.
Yes, but … while credit card usage is on the rise, so are delinquencies.
Researchers noted that, despite a higher number of Americans not paying their bills, the number is still low by historical standards.
Inside the numbers: - The good … student loan debt was lower at $1.57 trillion (thanks to a long forbearance period).
- The bad … auto loan balances were up to $1.52 trillion. (Cars are more expensive.)
- The ugly … interest rates on 30-year fixed mortgages are above 7%. (Last year, rates were just above 3%.)
 (Click here to view larger image.) It’s not that Americans are spending frivolously … inflation and subsequent interest rate hikes are making things more expensive.
Because I can’t not mention it: Click here to read my take on the crypto and FTX debacle.
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| Take a good look at this building. This is the command center for one of the most devastating plots in American history. A plot that could make the money in your wallet worthless ... and “give federal officials FULL CONTROL over the money going into, and coming out of, every person’s account.” And that’s just the tip of the iceberg. | |
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