Our discussion of Credit Card usage leads us review this:
Since 2000, American households have spent more than they earned – a shift from
the prior 3 decades. Q3 2005 household spending was a record $531 billion more
than their after-tax earnings (annualized). Consumer spending was 76% of Q3 GDP
– a record high, up from 73% in 2000.
Home Equity Cash Outs; Bank Mortgage assets as a % of total assets
Residential real estate is a record 204 percent of
disposable personal income, compared with 150 percent in 2000.
Quote of the Day:
“If all the economists in the world were laid end to end
they still wouldn’t reach a conclusion.”
– George Bernard Shaw