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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Noel de Leon who wrote (174471)	11/7/2005 10:26:34 AM
From: mistermj	Read Replies (2) \| Respond to of 281500

Remarks by Chairman Alan Greenspan Understanding household debt obligations At the Credit Union National Association 2004 Governmental Affairs Conference, Washington, D.C. February 23, 2004 Conclusion In evaluating household debt burdens, one must remember that debt-to-income ratios have been rising for at least a half century. With household assets rising as well, the ratio of net worth to income is currently somewhat higher than its long-run average. So long as financial intermediation continues to expand, both household debt and assets are likely to rise faster than income. Without an examination of what is happening to both assets and liabilities, it is difficult to ascertain the true burden of debt service. Overall, the household sector seems to be in good shape, and much of the apparent increase in the household sector's debt ratios over the past decade reflects factors that do not suggest increasing household financial stress. And, in fact, during the past two years, debt service ratios have been stable. federalreserve.gov