Total household net worth is at an all-time high, as well. I think that's more meaningful than comparing debt to GDP.
Using data from the Fed's most recent Flow of Funds Accounts, Table B.100.e, dividing by annual census data, here is the *PER CAPITA* household net worth from 1990 to 2000. Note that net worth is calculated by subtracting total liabilities from total assets. Note that this is *household* net worth, not business, not government. That means that mortgages are subtracted from homeowner's equity, credit card debt is subtracted, all the minuses are subtracted from all the pluses. In real dollars, not inflation-adjusted, for every man, woman and child in America, the total net worth per John 6Pack, Jane 6Pack, and Junior 6Pack was:
2000 $148,640
1999 $153,511
1998 $136,450
1997 $124,911
1996 $112,911
1995 $103,612
1994 $94,151
1993 $92,423
1992 $88,869
1991 $86,485
1990 $81,836
Just to beat a dead horse, I used aggregate data for households, but this isn't data per household.
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Which, IMO, has jack anything to do with the markets, and doesn't do a whole lot of good in predicting a recession/depression.
I am just pointing out to all the people who jump up and down screaming that debt is at an all-time high, so is equity.
I have yet to see any convincing data that debt causes depressions. Would that it were that simple. |
