Welcome my friends to the collapse of 2011.
Remember the mantra that “consumers have delevered” which has been run over the last two years as an incessant bark from the media, attempting to goad you, the consumer, into more spending and more consumption to “lift the economy.”
This claim has been a lie and a fraud upon the public and the new Fed Z1 makes this clear. The peak household credit liability was $13.92 trillion. It currently stands at $13.30 trillion, a reduction of a mere 4.6%.
This all came from home mortgages going ka-boom; $10.6 trillion to $9.9 trillion, a reduction of $700 billion. Total net reduction in liability was $620 billion; ex-mortgages consumer leverage has actually increased.