The latest Federal Reserve Bank of New York’s Center For Microeconomic Data Quarterly report on Household Debt and Credit reveals total household debt achieved a new peak in the first quarter of 2017, rising by $149 billion to $12.73 trillion-$50 billion above the previous peak reached in the third quarter of 2008.
These statistics are worth noting because 2008 levels of household debt was fueled by irrational speculation and loose lending standards in the housing market which in turn created the boom and bust. The economy in the mid 2000’s was cruising along at a 2-3% GDP growth rate and confidence in the country was high. House flippers were going to make the next millions and everything was HOT,HOT,HOT.
Over the last several years, many people have suffered because of job loss and financial hardship. Real estate values are coming back in many parts of the country and the Dow Jones Industrial Average is now at a record high of 21,637, but a sizable amount of Americans still have a problem making their bills. Take a look at the Edge Of Humanity Magazine article Low Unemployment Has Not Made a Difference For Many American Workers.
This high total household debt level of $12.73 trillion is alarming. Is the country heading down the same slippery sloop as before? The lending institutions are more than happy to allow consumers to pile on high debt loads. The goal is to keep the debt engine lubricated to generate higher profits and continue the game of musical chairs until the next time.
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