'RUNNING OFF THE CLIFF': AN EXPLOSION OF HOUSEHOLD DEBT HAS PUT THE US ECONOMY IN A TOUGH SPOT In a recent note to clients, the European Bank flagged a concerning trend that's taken hold in the US in recent years: the rise in household debt and the concurrent decline in household savings. Total liabilities among US households swelled to a record $19.9 trillion at the end of the first quarter, according to Fed data, a sign that Americans are continuing to borrow and fund their spending. Yet, the personal savings rate is hovering near a record low, shrinking to 2.6% in April, according to the Bureau of Economic Analysis. The trend might be the result of the so-called wealth effect, a phenomenon where Americans spend more because they feel wealthier as the price of assets like stocks and real estate rise, Albert Edwards, a SocGen strategist and famed market permabear, said. The market has soared amid the unrelenting enthusiasm for AI, with the tech trade making a red-hot comeback after stumbling earlier this year. Full article: https://www.msn.com/en-us/money/markets/running-off-the-cliff-an-explosion-of-household-debt-has-put-the-us-economy-in-a-tough-spot/ar-AA26bJRW?ocid=msedgntp&pc=HCTS&cvid=6a37ecb7e462466396e0d6dd5fccf886&ei=63#image=9(FXHedge)