Wednesday, October 29, 2008

Scary Picture!



Consumer debt is now equal to the gross national product.

BondDad explains what it all means.

Short version is that the real bottom line job of the next President is to encourage the creation of jobs.

6 comments:

  1. The best way to fix this is to have all credit card companies reduce credit interest rates from the outrageous 20% to a more reasonable 8% - they'd still make money, and people would get out of debt much quicker.

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  2. M. Neal12:06 PM

    Not just jobs, better paying jobs. How much of that household debt is held by people with jobs?

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  3. True enough, MN.

    KB, the majority of that household debt is in mortgages. Check this

    http://i17.photobucket.com/albums/b84/bonddad/condebt.gif

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  4. Still, I think Kevin has a point.

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  5. Howdy, PW!

    Everybody has points today and we all mostly agree. How unusual is that for a bunch of Progressives?

    Call me a non-freemarketeer or whatever, but I would like to see credit cards get some re-regulation.

    With that said, the mortgage crisis looms huge in consumer debt. We may be in for a longer economic downturn as a result.

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  6. Interesting that the dramatic peak begins around 2000.

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