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... Total liabilities among US households swelled to a record $19.9 trillion at the end of the first quarter, according to Fed data, a sign that Americans are continuing to borrow and fund their spending.

Yet, the personal savings rate is hovering near a record low, shrinking to 2.6% in April, according to the Bureau of Economic Analysis. ...

"The US consumer currently resembles the Wile E. Coyote character, running off the cliff and suspended in thin air briefly, before collapsing," Edwards said, referring to the potential for consumer spending to see a sharp drop if Americans were motivated to save more, such as if stock prices were to take a beating.

"It doesn't take a Fed PhD economist to tell us that if the US saving ratio (SR) stops falling, consumer spending will grow in line with income, which is falling. And woe betide the economy if the SR actually rises back to more normal levels," he added. ...