The Federal Reserve released their Nov. 2024 Stability Report. a few key points include higher leverage (business and consumer), auto and credit card deliquency higher, banking system strong, local banks maintain liquidity, and some reforms helped reduce cost. You can read the Federal Reserve Stability Report.
You can also watch the video below for a summary. I have a similar understanding of what the report says but I'm a little concerned about debt across multiple facets such as business, government (not included in report), and households. Credit card and auto loans delinquences are up but its not yet a major risk. Certainly something to keep an eye on.
(Let us explore an idea just for a structural giggle. I'm not advocating but I'm just thinking about it a little. Some experts believe that high debt is ok but I'm of the mindset it is better to be lower in debt and higher in investment assets. Thinking of ways to limit debit and in turn put that money into U.S. based investments for a higher ROI, vs. paying interest, could be helpful in the long-run. When we have a large percentage of society paying interest, the potential revenue is increasingly funneled through fewer hands and a lot of that money could be be leaking outside the U.S.. It would be nice to invest more in U.S. companies. i.e. if you have or start a U.S. company investment capital is readily available. One has to do some research to know whether that is true or structurally possible but its just an idea on one unexamined way to spur American business. A more direct relationship between investors and business. Just sort of dribbling out something to think about in terms of creating that perpetual sustainable economy. Could be the worst idea but didn't think about it enough to know one way or another.)
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