The Chart of the Week 25 July 2014
The consumer is still hamstrung by high debt in spite of the pullback in the ratio of household debt to wage and earnings from stratospheric levels. Today the ratio of household debt to wages and salaries is about double the average for the 30 years from 1955 to 1985. And it's 50% higher than it was just a little over 13 years ago at the turn of the century.
Household leverage is discussed in video following the Read more >> jump.
There is still a lot more deleveraging to come, most likely more than has been accomplished to date.
For more discussion on consumer debt see the weekly review article by Steven Hansen at GEI Analysis.