Household debt burden is easing, now lowest in 17 years, close to levels of the 80’s

Income has gone up, debt load has gone down . . . Household debt service as a percentage of disposable personal income is the lowest since 1994, also a period of economic recovery.  It is close to levels of the mid 80’s, yet again a period of economic recovery.  U.S. consumers have plenty of capacity to spend- they need to have enough confidence in the futureto spend.  There shouldn’t be any limitation on the spending for new smartphones and tablet computers this holiday season.  Holiday spending could easily exceed expectations.  Jeb Terry, Sr. Sept 24, 2011


Chart courtesy of Mark Perry at Carpe Diem

 Notice that savings deposits and money market funds are ~55% of DPI.  Recessions typically occur after cash has gone down and liabilities have gone up – unlike today.

Chart from

Aberdeen Investment Management – a guide service for micro-cap technology investment

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