U.S Household Debt: A Frightening Picture

Here is a frightening graphic from the FT on consumer debt levels:

Graphic courtesy of the Financial Times.

In 1990 consumer debt was at 60% of GDP (60% of a smaller GDP at that), in 2000 the number was around 70% and eight years later we’re above 100%.

Not much to say really, other than that something has to change or calamity will ensue; furthermore retailers used to consumers living above their means could be in for a rude awakening.

The graphic comes from a larger discussion around changing consumer behaviors towards debt (keeping credits and giving up on the house), which you can find here.

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Comment by Calvin C.

2008-08-26 22:01:39

Blame this dilemma on our hyper-consumer driven culture. What’s worse is what we’re teaching our kids. I foresee generation of spoiled entitled children unwilling to work for honest like their grandparents from the the Greatest generation (WWII) & counter culture 70s parents. It saddens me to think that we’re now passing trillions in debt to them & how they’re going to run this country right into the ground. 100 years from now the U.S. will be known as the greatest social experiment in human history, but all is not lost if we make a stand now & commit to change!

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