us household debt
Some info from an SCMP article.
- Household debt of the US has reached 100 per cent of country's annual GDP in 2007 = USD13.8 trillion.
- To get back to the historical mean level of 75 per cent, amount of USD2.5 trillion needs to be reduced.
- In case a third (USD1.1 trillion) is to be written off, banks and insurance companies do not have enough capital and they need to be nationalized.
- If the remaining portion (USD2.4 trillion, 17% of annual GDP) is to be repaid through future income, the government needs to incur equal amount of decicit to make up for it.