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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Thomas M. who wrote (116152)8/8/2001 5:11:29 PM
From: Ilaine  Read Replies (3) of 436258
 
It seems to me that the most meaningful measure of consumer debt is the ratio to disposable personal income. That tells you whether the consumer can pay it or not. If debt is going up but income is going up, too, what's the problem?

The ratio of consumer debt to disposable personal income was 7.91% in 2001:Q1. It was higher than that in 1980, 1981, 1985, 1986, and 1987.

economagic.com

Looking at that ratio, I don't see "excess" consumer debt - it's been between 6% and 8% for the past 20 years.
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