Tuesday, February 13, 2007

Just A Chart

This is a short entry: just a picture of the financial leverage of US households. The chart below shows the historical ratio of household debt to total household financial assets (bank deposits, securities, mutual funds, etc). The ratio can be interpreted as the overall "margin" of American households and it is now at an all time high, having jumped sharply in the past 6 years. Data from the Federal Reserve, current through 3Q2006.

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