Tuesday, February 13, 2018

Zero Hedge — Household Debt Rises By $572 Billion, Ends 2017 At All Time High



Zero Hedge
Household Debt Rises By $572 Billion, Ends 2017 At All Time High
Tyler Durden

3 comments:

Tyler Healey said...

So hard to tell if that's a good thing or a bad thing, though. If more people are taking on debt because their income has risen, then it's a good thing.

Tom Hickey said...

Right. The question is at what point the debt starts to become unsustainable. This is a function of debt to income ratio, but it's not as simple as total household debt to total household income.

Based on superficial measurements, Greenspan though the housing market was only becoming "frothy" when it was approaching the edge of a cliff in key areas, failure in any of which could spark a domino effect.

On the other hand, Steve Keen got a similar situation in Australia wrong and famously lost a bet.

Kaivey said...

I remember him making a bet, so he got it wrong, oh dear! All that maths and computer software, he's like a genius.