Over at Economics Unbound Michael Mandel is worried about the “biggest increase in debt ever“. Households have accumulated more debt in the last eight years than in the previous forty. I’m not sure if that debt is buying cars or remodels or furniture or college or what—but it looks like a lot.
What’s even more surprising it that the debt accumulation is occurring as baby boomers enter their fifties and sixties. You’d think they would be paying off mortgages and saving for retirement. Of course this is only one side of the balance sheet. Maybe household assets are going up even faster. Seems unlikely, especially with the residential housing bubble popping.