This Explains Why Any Hope Of A Consumer-Led Recovery Is A Pipe Dream

If you wanted one chart that explained the sluggish recovery, this would probably be it.

Courtesy of Deutsche Bank, it shows that household balance sheets remain a disaster by any historical measures.

At this level of relative household (in-)solvency, there’s little hope for robust spending. The only way out is for more deleveraging, a big surge in the home market, or perhaps a huge rally in stocks. Obviously the Fed is praying for one of the latter to.


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