Careening Cars

In 18Q1, household debt grew 3.8% Y-o-Y, down from the average growth rate of 4.5% over the previous four quarters. Overall delinquency rates fell because of better performing mortgages and student loans. However, credit-card loans 90 days late reached 8% in 18Q1, up from 7.5% in 17Q1. Worryingly, auto loan delinquencies/100,000 Initial Jobless Claims are 3.25, highest since at least 2003. Auto defaults aren’t worse because IJCs are ridiculously low.

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