“Inflationary pressures pose increasing price risks to Treasuries & stocks” as the Fed will react.
Margin debt is just the visible tip of the iceberg of leverage, and it reached the zoo-has-gone-nuts level.
The Fed did. Nearly everyone did. Even China nibbled again. Here’s who holds that monstrous $28.1 trillion US National Debt.
Are Americans finally figuring it out as they’re paying down their credit cards by record amounts? So far, $25 billion a year in lost interest income for the banks!
Forbearance Effect: Serious delinquencies of mortgages & student loans plunge to record lows because delinquent loans in forbearance don’t count as delinquent.
Commercial bankruptcy filings drop to lows last seen in the loosey-goosey days just before the Financial Crisis.
Archegos shows how leverage is the great accelerator of stock prices on the way up, and on the way down. One of its bets, ViacomCBS collapsed by 60%.
Subsidizing CMBS impedes the necessary market adjustment away from commercial property and toward residential redevelopment.
And refinance mortgage applications plunged by over half from 2020 spike.
The Fed provides the data quarterly, I dissect it at the stunning per-capita level.