The top clip shows us that from 1946 (at least) through 1999, households held more cash than they had liabilities. It was only from 2000 to the present that this number has been negative. It’s simply representative of the dramatic leverage households took on over the last decade. And now that the asset side of their balance sheet has been hit hard I expect meaningful reconciliation still to come as we have really only so far come up off of extreme lows.
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