October 2, 2020

...AND RICHER...:

No, Debt Is Not at Scary Levels Right Now (Kevin Drum, 10/01/20, MoJo)

In the case of both corporate and household debt, it doesn't do to just show raw levels or BBB bond issuance or median income. The simplest view is to look at total debt as a percentage of something that accounts for the fact that everything is growing, not just debt. In the case of corporations, debt-to-equity levels are the usual way of gauging things. In the case of households, debt as a percentage of income is the most revealing. Both are at historically low levels.


Posted by at October 2, 2020 10:53 AM

  

« KNOWING YOUR ALLIES: | Main | YOUR NEXT CAR WILL BE A VOLT: »