Debt Deluge Threatens US Growth, SocGen Warns

SocGen cautions that US household debt has surged to about $19.9 trillion while the personal savings rate sits near a record low, highlighting a weakening wealth effect and rising debt intensity that could leave consumer spending—roughly 70% of GDP—vulnerable if asset prices falter or credit conditions tighten. The combination of higher leverage and slower income growth suggests the economy could stall more quickly than expected if households cut back on spending.