Monday, February 27, 2012

Consumers get control of their finances


Consumers' financial health continues to improve, as delinquency rates on credit cards and consumer loans in general continue to decline (latest data available is 12/31/11, so it is quite likely that current rates are even lower). Credit card delinquency rates are now at their lowest level since 1991. Mark Perry has some related comments on business loan delinquency rates, which have also fallen impressively. All of this suggests that the economy is much less vulnerable to unforeseen difficulties or slowdowns.

4 comments:

Benjamin said...

Boom times coming...if the Fed will let it happen....

Public Library said...

If the Fed gets out of the way. Even the economy won't be able to fight the Fed in the end...

Dr William J McKibbin said...

@Benjamin, I would say that "boom times" are coming to investors -- I regret that workers are in for some very hard times...

Public Library said...

DWM is correct. Gross posted an interesting point not covered in Scott's graph. Although interest burden from debt is decreasing, interest income is decreasing at a faster clip and broaching territory not seen in a decade...