This New York Fed report(.pdf) showing aggregate consumer debt jumped $241 billion to $11.5 trillion in the fourth quarter, the biggest increase since the third quarter of 2007, has received a lot of attention today and was welcomed news by those who think that buying things you don’t need with money you don’t have is how the U.S. economy should operate.
Now, one could argue about whether you need a college degree these days, but there’s little question that few have the money to pay for it as evidenced by the bulging red bar segment in the lead graphic from the report below. According to this item by Wolf Richter, that red bar is enslaving an entire generation and, if so, that can’t be good.
The New York Fed’s Liberty Street Economics blog noted the dramatic rise in outstanding debt by said enslaved generation in this story earlier today.
I suppose when student loan debt really becomes a problem, someone will let us know.