US household debt stress just hit 2013 levels
Fed's latest Survey of Consumer Finances:
• 8.6% of families now burn >40% of income on debt payments (was 6.5% in 2022)
• Nearly 20% missed loan payments (up from 12%)
This is the worst debt stress since post-2008 crisis
Translation: The average American is getting squeezed hard. Less disposable income = less risk appetite = less liquidity flowing into speculative assets
When households are underwater, crypto becomes a luxury they can't afford. Watch for retail participation to stay muted until this reverses
Macro matters. Liquidity matters. This is bearish for risk-on assets short term
Fed's latest Survey of Consumer Finances:
• 8.6% of families now burn >40% of income on debt payments (was 6.5% in 2022)
• Nearly 20% missed loan payments (up from 12%)
This is the worst debt stress since post-2008 crisis
Translation: The average American is getting squeezed hard. Less disposable income = less risk appetite = less liquidity flowing into speculative assets
When households are underwater, crypto becomes a luxury they can't afford. Watch for retail participation to stay muted until this reverses
Macro matters. Liquidity matters. This is bearish for risk-on assets short term