"Almost one-third of all U.S. households have no mortgage. If you adjust for that, the 70-80 percent debt-to-equity ratio suddenly becomes a major challenge because it means that the two-thirds who do have a mortgage already face a debt-to-equity ratio in excess of 100%. Even worse, once the mean reversion has run its course, two-thirds of US households will be facing a debt-to-equity ratio of 120-125% on average. U.S. CONSUMERS ARE EFFECTIVELY BROKE."
New Deal (htp: Credit Writedowns)
Has he got this right?
And how about us in Britain? Can anyone make sense of it for me?
Showing posts with label New Deal blog. Show all posts
Showing posts with label New Deal blog. Show all posts
Sunday, August 09, 2009
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