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US household debt as percentage of GDP looks down https://www.statista.com/statistics/248283/household-debt-ratio-to-gdp-in-the-united-states/ https://www.stat

• onlyrealcuzzo 5y ago
  According to your source, it's above where it was pre-pandemic. And mid-pandemic, when interest rates were arguably the lowest, is when it peaked at 85%. FRED is a better source: https://fred.stlouisfed.org/series/HDTGPDUSQ163N https://fred.stlouisfed.org/series/HDTGPDUSQ163N It even has a chart [= I guess to the author's point - HH debt to GDP was much higher before 2008 when interest rates were much higher. However, lowering interest rates recently coincided with a DRAMATIC increase HH debt (the largest jump on the chart by far).
  • iso1210 5y ago
    The pandemic isn't over, yet the direction of debt is downwards. If you take the rate of change, I guess it slowed its descent about 2015, which happens to be when rates were increased from 0.25%. Seems that increasing rates causes the rate-of-change of debt to increase But that's by the point. Your claim was > Is the volume of personal credit not absolutely exploding right now because of the real estate boom? Well not according to the graphs you provided. Q2 2021 debt was 77.7%, down 0.9pp on Q1 2021.