U.S. debt load falling at fastest pace since 1950s

[Moonglow]

well mine sure has declined




WASHINGTON (MarketWatch) — Everyone knows America has too much debt. What they don’t know is that things are getting better, not worse.

Little by little, our economy is reducing its debt burden, slowly repairing the damage caused by 10, 20 or 30 years of excess.

If you want to know why economic growth has been so tepid, here’s your answer. Four years after the storm hit, the economy is still deleveraging. And it’s very hard for any economy to grow when everyone is focused on increasing their savings.

Total domestic — public and private — debt as a share of the economy has declined for 12 quarters in a row after surging over the previous decade.

U.S. debt load falling at fastest pace since 1950s - Yahoo! Finance

By Rex Nutting |

 

[CrusaderFrank]

That's the same guy that said Obama hasn't spend any money

I guess this year's $1.3Trillion deficit is just an illusion, right?

Ah OK just read it. Private debt vs public debt and private debt is down mostly because homes are underwater.

The main difference between public and private is that private debt does not have a the power to tax.

Is this guy Obama financial guru?

 

[Zoom-boing]

We don't owe anyone anything. Sweet.

 

[CrusaderFrank]

So US housing residential housing in a deflationary depression is a good thing for Obama -- who knew?

 

[Toro]

Private sector debt has declined substantially over the past five years. It has been replaced by a whole lot of public debt. If we start slashing public debt, we will have deleveraging and deflation unless we start growing significantly.

 

[CrusaderFrank]

Maybe the public debt is crowding out public debt, that's what Libs said about Reagan's debt

 

[Truthmatters]

Private sector debt has declined substantially over the past five years. It has been replaced by a whole lot of public debt. If we start slashing public debt, we will have deleveraging and deflation unless we start growing significantly.

which is why we need more stimulus.


when we do fully recover we will be cranking.


Then the tax base will be flowing money in.

tax the fucking rich its their turn to be patriotic for a change

 

[Rat in the Hat]

Private sector debt has declined substantially over the past five years. It has been replaced by a whole lot of public debt. If we start slashing public debt, we will have deleveraging and deflation unless we start growing significantly.

which is why we need more stimulus.


when we do fully recover we will be cranking.


Then the tax base will be flowing money in.

tax the fucking rich its their turn to be patriotic for a change

You still don't see the contradiction, do you?

 

[Stephanie]

Private sector debt has declined substantially over the past five years. It has been replaced by a whole lot of public debt. If we start slashing public debt, we will have deleveraging and deflation unless we start growing significantly.

which is why we need more stimulus.


when we do fully recover we will be cranking.


Then the tax base will be flowing money in.

tax the fucking rich its their turn to be patriotic for a change

sell one of your two homes and donate it the government..then we'll consider ALLOWING them to tax the fucking rich..

 

[CrusaderFrank]

Rex Nutting is this generations Paul Krugman

and I'm not kidding

 

[TakeAStepBack]

While Washington has taken on a lot of debt since then, the private sector has paid off, written off or dumped on the government almost as much.

Right. Socializing the losses. The govt. came in and saved the day for "private" sector areas facing insolvency.

At the same time, public debt is down because of - foreclosure, unemployment and bankruptcy.

The government is simply carrying the burden of creating a society so incredibly indebted, it can barely get to its knees since 2008.

It take a massive amount of pretzel logic to try and paint the current condition as anything other than a shift in where the burden of debt is being transferred to.

 

[TakeAStepBack]

Maybe the public debt is crowding out public debt, that's what Libs said about Reagan's debt

Exactly. Changing the form of where the public debt lays is not a decrease or curtailing in debt. Which is why economically ept folks see the bubble being built yet again.

 

[Wiseacre]

From the link in the OP:

" In fact, since the recession ended in June 2009, total U.S. debt has risen at the slowest pace since they began keeping records in the early 1950s. While Washington has taken on a lot of debt since then, the private sector has paid off, written off or dumped on the government almost as much.


So, the debt level isn't falling, it just isn't rising as fast as it used to. Well that's nice, but we still owe China a heck of a lot of money, and that ain't declining lately.

As a share of the economy, debt has plunged as a consequence of rapid deleveraging by families, banks, nonfinancial businesses, and state and local governments. The ratio of total debt to gross domestic product has fallen from 3.73 times GDP to 3.36 times.

Probably due to the slower rate of growth in GDP and all the foreclosures maybe?

In the 11 quarters since the recession officially ended, total domestic debt has risen by just $702 billion, or 1.4%. By contrast, in the 11 quarters before the recession began, in those bubble years of 2005, 2006 and 2007, total debt increased by $10.7 trillion, or 28%. "

Up until the crash, people were living beyond their means, maxing out credit cards and buying houses they couldn't afford to make payments on. It's good that they're not doing that any more, maybe partly cuz many of 'em lost their jobs. And of course the banks aren't writing as many new mortgages nowadays, now that the regulators have tightened the rules. Might be a tad early to start the party.