What’s going on with Switzerland? I thought they were so rich?
simplepimple2025 on
Household debt is mainly mortgage debt in richer countries. It’s a sign of wealth, not poverty. Not much household debt in a country like Somalia.
[deleted] on
[deleted]
Healthy_Razzmatazz38 on
its an important chart, for everyone freaking out about us debt to gdp, us debt is 39T us household net worth is 180T.
the currency isn’t going to collapse when the household nw could easily absorb the debt, the people holding the wealth would lose the money anyway in a collapse they’re going to prevent it.
If you shoved 10T onto the household side (which you do over time by raising taxes) you’d be at a better debt to gdp than most developed countries and still be somewhere between sweden and UK.
Wulf_Isebrand on
Rare PIGS W
Jaded-Dot66 on
I was telling an econ major the other day that household debt is the fastest way to grow an economy. She gave me a side eye, thought about it for a sec and said „probably, but the SA reserve bank’s mandate is to keep inflation low so there’s a hard limit on how low interest rates can go“. I noted „true“ and she asked „tis this but a paradox?“
TourDuhFrance on
No surprise that Canada is near the top. There have been plenty of articles recently about having the highest average housing prices in the developed world and the fact that its economy is far more dependent on profit and revenue derived from residential housing than any other developed nation.
allstars333 on
Fucking credit cards are ruining people.
Baron_von_Zoldyck on
Brazil is actually quite well off, huh. Home ownership does come off as common as renting is here, its quite even. Guess the renting apocalypse hasnt hit us already, yet.
MenudoMenudo on
Probably tracks very close to housing prices, since mortgages are a huge part of household debt.
InterestingFLows on
r/Canada ouch
Whatevs56 on
Household debt to net assets would be a better comparison. This seems irrelevant.
ypressays on
ok now how does it look if we remove the 100 richest households from the dataset
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What’s going on with Switzerland? I thought they were so rich?
Household debt is mainly mortgage debt in richer countries. It’s a sign of wealth, not poverty. Not much household debt in a country like Somalia.
[deleted]
its an important chart, for everyone freaking out about us debt to gdp, us debt is 39T us household net worth is 180T.
the currency isn’t going to collapse when the household nw could easily absorb the debt, the people holding the wealth would lose the money anyway in a collapse they’re going to prevent it.
If you shoved 10T onto the household side (which you do over time by raising taxes) you’d be at a better debt to gdp than most developed countries and still be somewhere between sweden and UK.
Rare PIGS W
I was telling an econ major the other day that household debt is the fastest way to grow an economy. She gave me a side eye, thought about it for a sec and said „probably, but the SA reserve bank’s mandate is to keep inflation low so there’s a hard limit on how low interest rates can go“. I noted „true“ and she asked „tis this but a paradox?“
No surprise that Canada is near the top. There have been plenty of articles recently about having the highest average housing prices in the developed world and the fact that its economy is far more dependent on profit and revenue derived from residential housing than any other developed nation.
Fucking credit cards are ruining people.
Brazil is actually quite well off, huh. Home ownership does come off as common as renting is here, its quite even. Guess the renting apocalypse hasnt hit us already, yet.
Probably tracks very close to housing prices, since mortgages are a huge part of household debt.
r/Canada ouch
Household debt to net assets would be a better comparison. This seems irrelevant.
ok now how does it look if we remove the 100 richest households from the dataset