Saturday, February 14, 2009

Debt Service/Personal Disposable Income Does Not Look Alarming, But Averages Are Deceptive



Source: Barron's, Bridgewater Associates


My Comments: Household debt service at about 15% of personal disposable income does not strike me as particularly alarming. I mean is paying $750/month out of $5000 that burdensome? But then averages are deceptive. Obviously, the distribution of both income and debt incidence is important.

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