Should We Worry About American Debt?: Part VI | Metals Mine

  • Should We Worry About American Debt?: Part VI

    From www08.wellsfargomedia.com Story is in PDF Format

    Leverage in the financial sector increased significantly in the years leading up to the financial crisis, and the rise in debt was especially marked among the government-sponsored enterprises, their associated mortgage pools and issuers of asset-backed securities. However, debt in the financial sector currently stands nearly $2 trillion lower than at its peak ten years ago, and the debt-to-GDP ratio of the sector has receded to a 20-year low. Deleveraging has been especially pronounced in the asset securitization part of the sector. Any concerns that readers may have about American debt at this time should probably ... (full story)

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676f6c64
Jul 23, 2019 1:22pm
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As we discussed in more detail in Part II, the financial health of the household sector has improved markedly over the past ten years. The household debt-to-income ratio has receded by more than 30 percentage points since its peak in 2008, and the financial obligations ratio of the household sector currently stands near a four decade low.

Sounds pretty rosy.
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