Tuesday, January 9, 2018

Debt-Laden and Poorer

Hundred dollar car loan
Two hundred rent
I get a check on Friday
But it's already spent
--Huey Lewis & the News

As observed here, although the stock market is at all time highs, Americans generally owe more, save less, and are poorer than a generation or so ago. A greater fraction of Americans have more debt than they have money in the bank than at any point since 1962.

About 30% of households have negative net worth despite the recovery in housing and stocks. Median net worth is below 1989 levels. If this was adjusted for inflation, then the results would be considerably worse.

No comments: