Macro Nugget: Consumer stress & Home-owner holiday
The weakest are the most vulnerable: The Matthew principle is in full effect both among companies and consumers in this cycle

An overarching theme throughout this cycle has been the notable disparity between “the haves” and “the have-nots.”.
We discussed this theme in the context of businesses and macro during the early spring (see here). This divergence dynamic also extends to consumers: Individuals who possess assets, particularly RE, serving as collateral, might find themselves benefiting from being locked in low-interest rates and prices still at elevated levels. No inforced foreclosures here.
We call this the golden handcuff syndrome.
Chart 1: Delinquency rates, Mortgages US
The weakest are the most vulnerable: The Matthew principle is in full effect both among companies and consumers in this cycle
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