February 8, 2006

Consumer Debt Growth

Barry Ritholtz:
The facts are indisputable - the consumer has grown increasingly levered just when interest rates are rising and the large amount of mortgages based on teaser rates are about to be reset.

The facts speak for themselves:
  • Non-discretionary consumer spending (for items like food, energy, medical expenses and interest payments) which vacillated in the 44% to 47% range until 2000 has now risen to 54%.
  • Household debt/household assets is at an all-time record high (up from 14% six years ago to nearly 19% today).
Posted by James Zellmer at February 8, 2006 9:27 AM | Subscribe to this site via RSS:
Posted to Business | Taxes