According to the New York Fed, total household debt increased by $35 billion in the second quarter to reach $12.3 trillion, only slightly below the peak of $12.7 trillion reached in 2008.
Student Debt: Federal Government Forgives Billions –
These numbers may seem to suggest that household debt growth is on a troubling trajectory but has Capital Economics’ economist Andrew Hunter writes in his weekly US Economics research note, there’s no reason to panic about household debt levels just yet.
The US economy has recovered the majority of its financial crisis losses and more since 2010. Consumers have reaped the benefits from this recovery as average disposable incomes have climbed steadily. And as a proportion of higher disposable incomes, household debt...
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