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Why Consumer Debt is Rising
This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by trent 1 year 143 days ago (www.msnbc.msn.com).
Views: 125
For the first time ever recorded, Americans owe more money than they make. Household debt levels have now surpassed household income by more than eight percent, reaching 108.4 percent in 2005 In 1952, the average debt to income (disposable income) ratio was less than 40 percent. Now, it's 126 percent.

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trent said
1 year 143 days ago
 
This article is exactly 1 year old but note this paragraph:

"It's unclear now whether the efforts by the Fed to raise interest rates were meant to slow the housing market or to have a tool at their disposal to stimulate the economy again when the market slows down. It's really unclear what their thinking was, whether it was meant to burst the bubble or to have a tool to recover when the bubble bursts. I think most people would believe the latter."

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