You’re In Fine Company.November 18, 2008 at 11:58 am | Posted in Economy | Leave a comment
Tags: Economy, your money
“Household Debt (Alone) Now Equals One Year’s (Total) GDP”
That’s the headline over at Blah3.
“It’s long been the case that private sector debt has been greater than private sector GDP (see here), but now it appears households alone are going to eclipse total GDP, which has not happened since recordkeeping began.”
This is not surprising given that “owners’ equity in their household real estate has plummeted (now ~45%) while mortgage debt has ballooned.”
If you are not familiar with Blah3 and you like to learn about the economy, where it’s been and where it’s going, I recommend you visit. They’ve got actual smart people over there. And they make good charts.