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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: GraceZ who wrote (11413)7/1/2003 12:47:30 PM
From: Mr. SunshineRead Replies (4) of 306849
 
Very interesting chart, but it needs a more detailed explanation.

Is this saying that the "average" consumer is paying only 7.5% of his disposable income to service debt? I find that hard to believe, unless one considers the ultra rich who likely have no debt - that would skew the results. Perhaps a better figure would be the mean. How exactly are they defining "net disposable income"? How was the data collected?

I looked quickly at the web site but did not see an obvious explanation of what the chart means, where the data came from, or who did the polling. Combined with my gut feeling that most people spend much more on debt service than the chart indicates, I will take it with a grain of salt.

You can prove almost anything with statistics and fancy charts, which is why a detailed explanation is important to us skeptics.
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