The Visual Du Jour – US Household Debt to Disposable Income
August 4, 2010 by SocProf
Not really surprising, also by design (stagnant wages + gotta absorb all these productive increases and goods made in the periphery through debt + the ownership society):
And I love this:
““Nobody knows what a sustainable household debt level is supposed to be,” says Mr. Ashworth.
Perhaps we’ll return to the near-100 percent debt level around the turn of the century. Or maybe debt levels will settle at whatever point they would have hit if the long-term, gently-upward-sloping trend from the 1990s had continued without interference from the credit bubble. That would be around 105 percent today.
Or maybe consumers will decide that being so highly leveraged is too dangerous, and they’ll revert to their lower household debt levels from the 1980s. (This seems unlikely, given how the credit market has evolved since then, but you never know.)”
Or maybe you’re just guessing cuz you have no idea. Geez, how about giving that prominent blog spot to people who have some sense of what is going on, like Ian Welsh or Stirling Newberry.
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