Two announcements in recent weeks suggest lenders have grown wise to the building risks. Home builder Lennar Corp. put Rialto Capital, its real estate lending group, up for sale. And Goldman Sachs Group Inc. said it will rein in the expansion of Marcus, its direct lending to consumers arm.
The outlook for households, and by extension the economy, is on shaky ground. Many households simply cannot weather a rising rate environment.
This article was provided by Bloomberg News.