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Old 02-07-2013, 08:02   #11
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Join Date: Feb 2005
Location: CO & Baden –Württemberg
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Originally Posted by Dennis in MA View Post
Oh, it's definitely not a long-term trend. We got suckered for 30 years on "debt helps the economy." But household debt is DROPPING faster than payments on said-debt would be.
High debt will pick right back up as consumer confidence picks up

Originally Posted by Dennis in MA View Post
Cars are flying out of showrooms. Do you really think the average 'Murican can't get credit??? And if we are in a recession, wouldn't debt payments, as a percentage of income, go up? (Is debt falling or are overall wages increasing???? Dang. Good news or . . . good news. Hmmmm.)
Incorrect assumption.

Considering that over half of Americans can't come up with $2000 in 30 days, I seriously doubt that cars, averaging about $30k, are being paid for with cash/savings. Credit has eased up a lot and likely people are just paying higher interest rates. That doesnt make debt ratios go up, but it does affect end cost.

For example, if you borrow money at 5% you still have the same debt ratio as if you borrow at 10% but your expenditure for the debt increases.
Twice a week? 14 times a month?
2x4=8, not 14.
Many of the truths that we cling to depend on our point of view.
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