At yearend 2015, the total debt of USA households was 13.7 trillion. This amount includes a small but unknown amount of bank loans to nonprofits. The population of the USA is about 320M. Hence Americans owe an average of about $43000 apiece. Two thirds of this amount consists of home mortgages. One quarter consists of consumer credit and student loans. In order for #11 to be correct, the average USA household has to have 5 members, which is implausibly large.
I am sceptical of the survey evidence that grounds most or all of this article.
If there is a major economic crisis in the USA, a revolt at the ballot box will limit the ability of creditors to come down hard on the houshold sector. It is financial firms that will be hit hardest.
The following data offsets the above liabilities. The Fed values American owner-occupied homes at 22 trillion. American households and nonprofits own 10.8 trillion of deposits, 4.5 trillion of debt instruments, 14 trillion in stock, and 6.6 trillion in mutual funds. The Fed estimates the net worth of unincorporated firms at 10.7 trillion, a figure includes farms and most commercial real estate.
14 Signs That Most Americans Are Flat Broke And Totally Unprepared For The Coming Economic Crisis
At yearend 2015, the total debt of USA households was 13.7 trillion. This amount includes a small but unknown amount of bank loans to nonprofits. The population of the USA is about 320M. Hence Americans owe an average of about $43000 apiece. Two thirds of this amount consists of home mortgages. One quarter consists of consumer credit and student loans. In order for #11 to be correct, the average USA household has to have 5 members, which is implausibly large.
I am sceptical of the survey evidence that grounds most or all of this article.
If there is a major economic crisis in the USA, a revolt at the ballot box will limit the ability of creditors to come down hard on the houshold sector. It is financial firms that will be hit hardest.
The following data offsets the above liabilities. The Fed values American owner-occupied homes at 22 trillion. American households and nonprofits own 10.8 trillion of deposits, 4.5 trillion of debt instruments, 14 trillion in stock, and 6.6 trillion in mutual funds. The Fed estimates the net worth of unincorporated firms at 10.7 trillion, a figure includes farms and most commercial real estate.
www.federalreserve.gov/.../z1r-5.pdf