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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (96303)4/19/2001 8:37:42 PM
From: Mark Adams  Read Replies (3) of 436258
 
debt service at nearly 15% of disposable income, both record highs

Can you provide a source/reference for this? Per my prior efforts, I put the Total Interest Burden, as a percentage of disposable personal income, close to 3%. I realize the debt to disposable income ratio would be higher, yet believe this "interest coverage ratio" is the key to understanding the consumer debt.

Message 15543838

While we are at it, I'm ready to thrust a shaft of malcontent into the comparisons by Richard Russell, in last weeks Barrons.

While I respect the man, I don't believe you should compare the PEs on stocks during the 73/74 bear with today, as inflation and interest rates are totally different. The macro environment today is not the same as then, and I would go so far as to say that PE ratios should be lower if interest rates were pushing 10% today.

If anything, the comparisons done in that article point out the potential folly of comparing the past and present using such a narrow indicator in a vacuum.
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