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« WSJ: We Should Have Eaten Those Toxic Assets | Main | WSJ: What's The Matter With Wall Street? »

August 31, 2010



Please explain why a linear trend line is used rather than an exponential extrapolation? Perhaps it is reasonable for a short period of time to use a linear model, especially because GDP and household income have slowed. However, over a seven year period, using a linear trend line does not make sense to me.


A more appropriate way to present the data is with logarithmic scale. A 1980 dollar represents a much higher debt than a 2010 dollar.

If you think about it, the debt burden on the consumer in the 1980's, when mortgage interest rates were ~14%, is rather more crushing than the current rate environment. There is a refi boom going on, and if the rules on LTV are altered by government fiat, there will be a substantial increase in personal income due to the debt relief from lowered interest payments.

Ben bernanke

Andy you are completely wrong on deflation (and several other topics) - we are now seeing the monetization of the US dollar. Hyperinflation will follow.

This is a race to the bottom folks and you're all going to be a LOT poorer by the end of it.


People deserve very good life time and home loans or short term loan can make it much better. Just because freedom is based on money state.

converse all star

Si vous pensez cela, le fardeau de la dette sur le consommateur dans les années 1980, lorsque les taux d'intérêt hypothécaires sont ~ 14%, est un peu plus de concassage de l'environnement de taux actuel. Il ya un boom refi passe, et si les règles sur LTV sont modifiées par un décret gouvernemental

monster beats studio

Euro-zone finance ministers plan to meet again this Sunday to address the Greek tragedy. But so far the only plan on the table is a doomed one by the French for the voluntary restructuring of sovereign Greek debt. Private buyers are increasingly skeptical of government guarantees and will demand real collateral. Credit default swap derivatives, which merely spread the risk, will no longer do. Some other sweetener will be needed. The solution? Bonds backed by real Greek assets.

Nike Free 3.0 V2

details of the design of existing features added to the actual wear and kill two birds with one stone!

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