1. Wow. Debt held by those younger than 50 years old as a share of all US consumer borrowing increased by the most on record in the third quarter, according to Federal Reserve figures out Tuesday. Consumers under the age of 50 now hold 55% of all US household debt outstanding compared with almost 48% in the second quarter. The massive 7-plus percentage points surge is unprecedented in New York Fed bank data going back to 1999. Total US household debt grew by $228 billion last quarter to reach $17.3 trillion. The increase was completely driven by consumers younger than 50, whose debt rose $1.4 trillion. Borrowing by older Americans was little changed. The change was largely driven by mortgage, credit card, and student loan balances. Before the pandemic, debt outstanding was roughly equal among younger and older households. Since then, younger consumers added close to $3 trillion in debt while the older Americans added $1.3 trillion. In light of rising interest rates, carrying higher debt loads underscores the financial challenge for consumers under 50. (Source: bloomberg.com, italics mine)
2. Facing growing anger from their own people, Arab countries are intensifying their appeals to the United States to pressure Israel to implement an immediate cease-fire in Gaza or risk sabotaging the security of the entire Middle East. Saudi Arabia, Jordan and Egypt have all implored American officials, including Secretary of State Antony J. Blinken, to get Israel to halt its military assault. “The whole region is sinking in a sea of hatred that will define generations to come,” the Jordanian foreign minister, Ayman Safadi, warned at a news conference this weekend. (Source: nytimes.com)
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