{"id":24871,"date":"2017-08-24T10:00:33","date_gmt":"2017-08-24T15:00:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24871"},"modified":"2017-08-24T10:00:33","modified_gmt":"2017-08-24T15:00:33","slug":"why-doesnt-this-household-debt-worry-anyone","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24871","title":{"rendered":"Why Doesn’t This Household Debt Worry Anyone?!"},"content":{"rendered":"

Why Doesn’t This Household Debt Worry Anyone?!<\/a><\/h3>\n
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With all the attention going to political tensions between the USA and North Korea and the interest rate policies and monetary policies established by the various central banks around the world, we would almost forget to keep track of how the \u2018real\u2019 economy is doing. And then we aren\u2019t talking about GDP results or theoretical consumer confidence levels, but about how the average households in the United States are doing with a special attention to the debt levels.<\/p>\n

Because consuming goods is one thing. Being able to afford them is another thing and if your consumption pattern and consumption economy is based on quicksand, then one simple economic shock might cause the entire consumption-based economy to collapse.<\/p>\n

The Federal Reserve Bank of New York has provided an updated net household debt situation, and the chart looks pretty alarming. After the Global Financial Crisis has hit the USA, the total debt decreased from 12.7 trillion dollar<\/a> to 11.3 trillion dollar by 2013. Whilst this seems like a marginal move fueled by lower mortgage debt, it\u2019s actually pretty impressive considering the 125 million households<\/a> in the USA reduced their net debt by $11,200 per household.<\/p>\n

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Source: NY\u00a0 Fed<\/p>\n

However, since 2013, the fears for another financial crisis have decreased as the US banks seemed to be fine as most were passing the stress test of the Federal Reserve with flying colors. Meanwhile, the focus of the crisis and monetary world shifted towards Europe where Greece, Italy and Spain were trying to get their public finances in order.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Why Doesn’t This Household Debt Worry Anyone?! With all the attention going to political tensions between the USA and North Korea and the interest rate policies and monetary policies established by the various central banks around the world, we would almost forget to keep track of how the \u2018real\u2019 economy is doing. And then we […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[195,353,1935,11136,4318],"class_list":["post-24871","post","type-post","status-publish","format-standard","hentry","category-economics","tag-debt","tag-gdp","tag-household-debt","tag-secular-investor","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24871"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24871\/revisions"}],"predecessor-version":[{"id":24872,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24871\/revisions\/24872"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}