It doesn't appear that the Great Recession less than 10 years ago changed the behavior of many citizens. Housing debt is a little lower, but other debts/overall debts are actually higher than 2008. With interest rates still so low, you have to wonder how close we are to the end of the short term debt cycle.
When consumers run out of available income for credit, spending decreases. Remember, a majority of the money exchanged for homes, cars, college, etc. is with DEBT not cash. With interest rates near zero, that card has been played to spur spending since 2010ish. Will we see some inflation before things taper off?
I can tell you that $0 down loans and similar products to stated income are back in the housing market already. I've seen many around me take on new cars, boats, RV's, etc. over the last few years. All financed of course.
As usual, time will be the best teacher.
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Todd
Last edited by Vegas69; 11-11-2017 at 04:20 PM.
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