Updated

New research shows American households' ability to meet debt payments has deteriorated to levels not seen since the Great Recession, even as wealth disparities have narrowed somewhat. Separately, margin debt — borrowing against stock portfolios — has surged to record levels, with increasing numbers of ordinary retail investors using leverage to trade, raising concerns about amplified losses if markets turn. Together, the trends point to growing financial fragility among U.S. consumers and investors, with analysts warning that elevated leverage and debt stress could exacerbate market volatility or economic strain if conditions worsen.