Maikel Wijsbek’s Post

Household net worth hit a new record at $163.8 trillion in Q2 2024. A rising stock market and appreciating home values are driving this growth. Business and household #borrowing continued to expand in the second quarter, thanks to less strict lending standards by commercial #banks. “It’s now up to the #Fed to take the baton and stay out ahead in the race to keep the expansion continuing.” Read #KPMG Senior Economist Ken Kim’s full report: https://bit.ly/4en1TAe

Household net worth hit a new record at $163.8 trillion in Q2 2024. A rising stock market and appreciating home values are driving this growth. Business and household #borrowing continued to expand in the second quarter, thanks to less strict lending standards by commercial #banks. “It’s now up to the #Fed to take the baton and stay out ahead in the race to keep the expansion continuing.” Read #KPMG Senior Economist Ken Kim’s full report: https://bit.ly/4dcHdu3

Household net worth hit a new record at $163.8 trillion in Q2 2024. A rising stock market and appreciating home values are driving this growth. Business and household #borrowing continued to expand in the second quarter, thanks to less strict lending standards by commercial #banks. “It’s now up to the #Fed to take the baton and stay out ahead in the race to keep the expansion continuing.” Read #KPMG Senior Economist Ken Kim’s full report: https://bit.ly/4d0ceBe

#Delinquency rates and the transition into troubled status were both higher. The New York Fed said 3.1% of outstanding debt was in some type of delinquency, up one-tenth of a percentage point from the third quarter. But overall delinquency rates were 1.6 percentage points lower than in the last quarter of 2019 before the pandemic struck. The New York #Fed report describes #credit conditions in an economy that has been growing strongly amid historically low levels of #unemployment and rising incomes. #reutersnews

#BegbiesTraynor forecasts continued high #insolvency levels due to rising interest rates and funding demands straining company finances. The restructuring specialist anticipates persistent corporate distress next year, following a 12% increase in #insolvencies, reaching 25,391 by April 30. The Bank of England raised the base rate to a 16-year peak of 5.25% to combat #inflation. While rates are expected to fall this year, businesses will still face high #borrowing costs. It's also expected that smaller companies will continue to struggle but #insolvency numbers should decline as interest rates fall and consumer confidence returns. #commercialdebtcollection #debtrecovery #insolvency #insolvencies #begbiestraynor

Credit to Christof Leisinger February 28, 2024 The real wealth surplus of US households is dwindling now https://lnkd.in/g455Cg22 We see two takeaways about the risks going forward. On the one hand, the overall level of real household wealth remains above levels observed just before the onset of the pandemic, which could signal continued strength in spending out of wealth going forward. Gains in equity markets since late 2023 may reinforce this strength. On the other hand, liquid assets, which more readily fund spending, have been diminishing and are approaching levels significantly lower than the projected pre-pandemic path. As these.excess liquid funds run out, consumers may decide to pull back on spending (FRBSF Economic Letter 2024-06 I Februarv 26.2024)

Impact of stimulus may be fading. Amid elevated inflation, the median household income in the US decreased. In keeping with the theme, personal savings has gradually decreased as time moves further and further away from COVID stimulus. Read more on the State of the Consumer in our Q2 Market Outlook at: https://lnkd.in/eikr-jis #privatecredit #creditmarkets

Delinquencies are continuing to rise 📈 It is NOT a good trend. Previously, such a rapid surge occurred in 2009, during the crisis. “This has recently hit about 10.9%, which is the highest we’ve seen in 12 years for credit cards,” -Brian McCarthy Deloitte The notion that cutting interest rates will "fix" everything overlooks larger structural issues. Consumers are drowning in $1.4T of debt with relentless spending not to mention the national deficit Interest rate cuts are also far from a guaranteed fix for revitalizing a slowing housing market as prices remain excessively overvalued. Sustainable solutions require more than just rate adjustments. #interestrates #debt #consumer #slowdown #spending #uncertainty #macro #economy #fed #rates #risks #creditcards #housing

It's been a bumpy path for the housing market this year, but a recovery may be on its way as the Fed cut interest rates at its September policy meeting. Will lower rates be the boost the U.S. housing market needs? https://bit.ly/4f6Thhx #ICG #InspireConfidence #SimplifyLife #ReduceStress #WealthPreservation #InspireConfidenceGroup #AmeripriseFinancial

It's been a bumpy path for the housing market this year, but a recovery may be on its way as the Fed cut interest rates at its September policy meeting. Will lower rates be the boost the U.S. housing market needs? https://bit.ly/4eJSJi7 #ICG #InspireConfidence #SimplifyLife #ReduceStress #WealthPreservation #InspireConfidenceGroup #AmeripriseFinancial