Six Charts To Summarize The NY Fed's Un-Deleveraging Report

Tyler Durden's picture

The NY Fed's quarterly smorgasbord of everything debt-related to the good old American household has little fresh and exciting from the top-down as the nation in aggregate (according to the data) continues to delever - though ever so slightly this time (-0.7% to $11.31tn of total consumer indebtedness) driven mostly by a drop in mortgage indebtnedness (defaults?). However, bottom-up things are a little more interesting; aside from the aforementioned Student Loan debt bubble going 'pop', the glorious states of California, Nevada, New Jersey, and New York each have a little something special for us to focus on as our nation (rightly so) slides uncomfortably down the deleveraging path and along with average collections at record highs, surging auto loans, and jumps in Nevada's new foreclosures, there's a little here for everyone. As Keynesian Yoda might have said, "Deleveraging is the path to the dark side; deleveraging leads to reduced credit demand; reduced credit demand leads to less growth; and less growth leads to suffering," though he might have also added (on the de minimus deleveraging that actually occurred): "size matters not."

 

Nevada is still flying the flag for most aggressively deleveraging State on a per-capita basis and shows no signs of slowing. New York (on the other hand) does not seem to have felt the need to delever at all...

 

California tops the charts in housing-related debt (mortgage plus HELOC) per-capita with New Jersey, Nevada, and New York close behind (all notably above the nation's average)...

 

Nevada though had a little surprise (red oval below) in that its new foreclosures jumped dramatically in the last quarter...

 

It seems Nevadans are giving up on their homes and their educations - as their per-capita student loans are the lowest among the NY Fed's data - with New York leading the way...

 

But we are sure it's all fine as the surges in car loans will save the US manufacturing base - while seasonals are obviously at play, it would seem priming the pump of new car demand has required an ever-increasing load of new debt to get us back to the old normal - we will see how all those subprime car loans are doing in 30, 60, and 90 days...

 

and indeed, the average collection amount per person has almost doubled in the last ten years and shows no signs of stopping...

 

Full chart pack via NYFed:

Q3 Household Debt and Credit Report