Scary Debt Chart
- Thread starter Audi Junkie
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The American dream. Standard of living must increase regardless of the cost.
Just wait for the inflation to hit and interest rate to rise in conjunction with the newest generation of taxes.
Neat chart, interesting. First, look at the Vietnam years 1965-74, pretty much nothing happening there. Jump up during Carter's presidency. Then the first four years of Reagan was the recession, so it dropped, second four years, the boom.
Then look at mortgage debt after the S&L crisis, from 1991 to 2000, no growth relative to GDP, but other consumer debt was rising. That was the time to buy a house.
Since 2000 - yeesh, what a mess.
Then look at mortgage debt after the S&L crisis, from 1991 to 2000, no growth relative to GDP, but other consumer debt was rising. That was the time to buy a house.
Since 2000 - yeesh, what a mess.
If you think that one is scary, take a look at this:
http://www.usdebtclock.org/
Notice that unfunded liabilities are significantly higher than the NET WORTH of our entire country?
http://www.usdebtclock.org/
Notice that unfunded liabilities are significantly higher than the NET WORTH of our entire country?
This chart means nothing without a correlation to interest rate and inflation.
Originally Posted By: Tempest
If you think that one is scary, take a look at this:
http://www.usdebtclock.org/
Notice that unfunded liabilities are significantly higher than the NET WORTH of our entire country?
Gee, we need a few more entitlement programs.
If you think that one is scary, take a look at this:
http://www.usdebtclock.org/
Notice that unfunded liabilities are significantly higher than the NET WORTH of our entire country?
Gee, we need a few more entitlement programs.
Kestas
Staff member
If you look at the household debt chart, there's enough detail (or ripple), that within each year the debt peaked out around August. I find this curious.
Quote:
Somebody owes someone more than the world's annual production.
You assume that all of that must be paid. To my understanding, most of it won't be. And that probably includes futures markets and other things that have been around a very long time.
Insurance companies usually only have about 10% reserve, so their books would look even worse, yet they stay in business.
The other interesting thing on the debt clock is that, according to their numbers, 15% of the US work force works for government agencies at some level.
Somebody owes someone more than the world's annual production.
You assume that all of that must be paid. To my understanding, most of it won't be. And that probably includes futures markets and other things that have been around a very long time.
Insurance companies usually only have about 10% reserve, so their books would look even worse, yet they stay in business.
The other interesting thing on the debt clock is that, according to their numbers, 15% of the US work force works for government agencies at some level.
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Originally Posted By: PandaBear
This chart means nothing without a correlation to interest rate and inflation.
It's percent of GDP, not absolute dollars.
This chart means nothing without a correlation to interest rate and inflation.
It's percent of GDP, not absolute dollars.
Originally Posted By: addyguy
May sound 'simple', but summer vacations and back-to-school preparations would explain that one - think of all the students who get student loans to head to school in August.
Related as well, a lot of people buy homes during the summer months and close on those sales, end of summer beginning of Fall. Theres always a rush of families getting settled into new homes and new school districts in the fall months.
May sound 'simple', but summer vacations and back-to-school preparations would explain that one - think of all the students who get student loans to head to school in August.
Related as well, a lot of people buy homes during the summer months and close on those sales, end of summer beginning of Fall. Theres always a rush of families getting settled into new homes and new school districts in the fall months.
JHZR2
Staff member
Originally Posted By: Kestas
If you look at the household debt chart, there's enough detail (or ripple), that within each year the debt peaked out around August. I find this curious.
I was going to say November... Remember, black friday is the first day stores go in the black for the year... at least supposedly.
If you look at the household debt chart, there's enough detail (or ripple), that within each year the debt peaked out around August. I find this curious.
I was going to say November... Remember, black friday is the first day stores go in the black for the year... at least supposedly.
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Originally Posted By: LS2JSTS
Originally Posted By: addyguy
May sound 'simple', but summer vacations and back-to-school preparations would explain that one - think of all the students who get student loans to head to school in August.
Related as well, a lot of people buy homes during the summer months and close on those sales, end of summer beginning of Fall. Theres always a rush of families getting settled into new homes and new school districts in the fall months.
That was my first thought. What did I do during that period ..and what did I stop doing.
The oddity is that Sept is the time when most new cars were introduced. The lead up to this was in the previous quarter in terms of production ..which may explain some of the surge over the summer.
Originally Posted By: addyguy
May sound 'simple', but summer vacations and back-to-school preparations would explain that one - think of all the students who get student loans to head to school in August.
Related as well, a lot of people buy homes during the summer months and close on those sales, end of summer beginning of Fall. Theres always a rush of families getting settled into new homes and new school districts in the fall months.
That was my first thought. What did I do during that period ..and what did I stop doing.
The oddity is that Sept is the time when most new cars were introduced. The lead up to this was in the previous quarter in terms of production ..which may explain some of the surge over the summer.
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