Friday, August 19, 2005

What does your family owe?

Very nicely written article about our profligate ways. Each family owes $145,000, not including credit card debt. Let's see, if median income is about $58,000, and our savings rate is 0.02% that equals about $11. $145,000/$11 = approx 13,000 years. Yeah, I think it's doable. Perhaps by the next ice age, we will be debt free. Or, a better idea. We'll have a recession, we will take away $145,000/family of equity built in their house and send it to the Asians. Or, we'll raise taxes to 80% to pay for today's fancy living. Or, our country will default on it's debt and just say oops., sorry. Our bad. I just don't see an attractive solution. But, time will tell.


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