The United States: While household leverage (debt-to-income) is low compared to pre-recession levels, we should pay more attention to financial obligations, which include rent. The green line below shows that households’ total financial liabilities are now much larger relative to debt obligations.
United Kingdom: Credit quality is declining for UK consumer services companies.
China: Producer price inflation has moved deeper into negative territory, which is pressuring industrial profits.
Energy: US crack spreads have widened recently, boosting refinery margins.
Rates: The Fed’s bill purchases (boosting reserves) are a longer-term “replacement” for the repo financing.
Food for Thought: Manhattan housing market:
Edited by Daniel Moskovits
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