Thursday, September 24, 2009
This chart includes recently-released data through June '09. As the dotted green lines suggest, households' debt service and total financial burdens (i.e., payments as a percent of disposable income) have not increased at all since the end of the 2001 recession, and they have even eased a bit over the last year. This is not to say, of course, that many households haven't been ruined by excessive debt obligations (bankruptcy rates are unusually high), because indeed they have. But it does suggest that, in aggregate and on balance, household financial conditions are not at all precarious, and have not changed meaningfully for quite some time.
Posted by Scott Grannis at 2:36 PM