Monday, June 27, 2011

It's the debt Stupid!!!

Came across this on Zero Hedge and it explains in a sentence or two why none of our government stimulus activity is showing any results at this point. You don't need a PHD in economics to understand. Hat tip to David Rosenberg and Zero Hedge

U.S. consumers have 30% more credit card and other revolving debt on their balance sheet than they did just a decade ago. While outstandings are down 6% from the peak, there is still considerable contractions to go before household debt levels revert to the mean relative to both income and assets.

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