It’s all about housing debt

From Torsten Sløk, Ph.D.:

Per capita debt levels have moved essentially sideways over the past decade, see chart below, and student loan, auto loan, and credit card balances are all very low compared with mortgage debt levels. For example, student loan balances currently stand at $4920 per capita; this compares with around $34000 per capita in mortgage debt. Put differently, for household debt to be a macro problem we will need another big nationwide decline in home prices.

 

The chart is interesting:


Source: Deutsche Bank Research