Sociable

Wednesday, June 8, 2011

Could private debt lead to our own ‘Lost Decade’?

I think they mean two decades.  Now, that prices are closer to 2002 prices.
What's at the root of the problem? In a nutshell, consumers and businesses took on too much debt--especially in real estate--during the years before the housing bust and the financial crisis. In early 2008, total private debt was nearly three times the size of GDP. It's true that since the recession began, the level of private debt has fallen, as people and businesses have started saving more. but existing debt levels are so high that consumer spending is sluggish, since few people want to spend when they're already in debt. And until consumers start spending again, the economy won't fully recover.
Granite kitchens come at a high price.
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