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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: GraceZ who wrote (11426)7/1/2003 1:53:16 PM
From: bozwoodRead Replies (1) | Respond to of 306849
 
They still have to pay back their debt regardless of the payments. They are not lowering their household debt as the % of disposable income. The ratio is now at about 100% vs 70% in 1980 and 35% in 1950. This, IMO, has more far reaching implications than a temp. lower (not that much lower really, considering historically low int rates) debt service burden.