It’s hard to believe, or maybe not, but we never seem to learn our lessons about money. Pushing subprime mortgages to people who could not afford all the costs of a house, along with irresponsible home equity borrowing got us into the 2008 debacle and yet today you can get a mortgage with 5% down . . .
- Every three months, the Federal Reserve Bank of New York puts out a report on household debt. Over the five years through September 2008, the amount of debt carried by U.S. families soared 68%, as we hurtled toward the financial crisis. Americans shed debt over the next five years, as they paid back the money they borrowed and also defaulted on loans. Since mid-2013, however, borrowing has picked up again. Result: As of 2018’s third quarter, Americans were carrying 6.6% more debt than in September 2008.
Categories: Observations on life