Debt Profile

"You think you're free. You're not."
--Diamond Dog (Con Air)

Interesting Pew study that profiles increased tendencies for American households to increase debt and leverage over the past few decades. Approximately 80% of households have some type of debt. Younger Americans hold more debt while having lower incomes (higher leverage ratio).

Particularly interesting is the balance sheet snapshot, which indicates how few liquid assets Americans tend to have. Liquid assets and cash to debt ratios at all ages is alarmingly low.

Because debt reduces freedom and cash increases freedom and flexibility, it appears that most Americans have elected to sacrifice freedom in order to live larger in the near term.