(NY Times) Rise in Household Debt Might Be Sign of a Strengthening Recovery

Posted by Kendall Harmon

For the first time since the Great Recession hit, American households are taking on more debt than they are shedding, an epochal shift that might augur a more resilient recovery.

For two of the last three quarters, American households’ total outstanding borrowing on things like credit cards, mortgages and auto loans has increased after falling for 14 consecutive quarters before then. Some economists even see an end to the long, hard process of deleveraging — as they refer to the cutting of debt relative to income or the nation’s economic output. That process, they say, has been a central reason for the extraordinary sluggishness of the recovery.

“We’re at an inflection point,” said Kevin Logan, the chief United States economist for HSBC. “Debt is less of a burden” for households, he said.

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Filed under: * Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeHousing/Real Estate MarketLabor/Labor Unions/Labor MarketPersonal FinanceThe Banking System/SectorThe Credit Freeze Crisis of Fall 2008/The Recession of 2007--* TheologyEthics / Moral Theology

1 Comments
Posted October 27, 2012 at 9:29 am [Printer Friendly] [Print w/ comments]



1. Scatcatpdx wrote:

I do not see how taking on more debt is a sign of recovery to me it a sign not many had learned an important lesson: debt is dumb.

October 27, 11:49 pm | [comment link]
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