U.S. households are slowly repairing their (private) balance sheet. We’ve a long way to go, but according to the latest Flow of Funds report, we’re making progress.

See the chart below

As households and businesses cut debt, governments (state and federal) are adding debt to soften the blow. The good news appears to be that consumers are de-levering faster than the government is re-levering, a figure I’m trying to nail down at the moment.

More soon….