Americans Are In More Debt Than In 2008- And they say this is a good thing?!?
So this week it was reported that we have now topped the 2008 peak of household debt(link below), and it's being widely reported as a great thing. Many reasons why, they say well the quality of borrowers is higher, mortgage debt is down relative to 2008, etc , etc..
This is insane.. ..First off probably everyone reading this understands we have a debt-based economic model.. So I understand that the world now runs on credit so in that regard maybe you can say... well see economic activity is up... But that is merely looking at the surface..
Lets get real, student debt has EXPLODED, and unlike housing debt that if you get upside down on you get file chapter 11 and work your way out of that mistake. Student Loan is not forgivable, and in general you can't collect tax refunds, social security etc until you pay that off. Mortgage debt is down, likly because folks are still renting because they got two/three part time jobs! Credit Card debt is not really down, and the kicker.... auto loans are through the roof. With auto loans they don't even claim higher quality borrowers because it is huge with subprime loans...
That's the way I see it and that is just scratching the surface... Any one else see if differently or have something to add?