Total Consumer Debt as % of Discretionary Income (Send me email for the chart) The problem with the «consumer debt as percentage of discretionary income» measure (the above chart) is that it ignores the true cost of debt since
higher debt levels in a low - interest - rate environment may not result in a high debt service burden (interest and principal payments) on the consumer.
Japan's government has among
the highest debt levels in the world, with a debt - to - gross domestic product (GDP) ratio of 220 percent.
China may witness its first local government bond defaults, although the timing was uncertain, Fitch Ratings said in a press release issued on Sunday, amid persistent concerns over
high debt levels in the world second largest economy.
Investors continue to be concerned about
high debt levels in many European countries.
While it has a debt - to - GDP ratio of 80 %, one of
the highest debt levels in the region, the financial firm says that's much lower than Greece.
Many individuals have accumulated
high debt levels in recent years and have found that the debt level that they are carrying is unmanageable.
Here's a quick look at some of the states whose residents have
the highest debt levels in the country:
That's
the highest debt level in five years and only 4.4 % under the all - time high of $ 12.68 trillion that we owed just before the economy tanked in 2008.
Not exact matches
He points to
high levels of global
debt, low liquidity
in markets, political events affecting trade and structural imbalances
in some emerging economies.
While the
high level of existing
debt means rate hikes will have a stronger impact
in cooling demand than they did
in previous years, it is still too soon to know just how much of an effect the bank's three rate hikes have had, Poloz said.
«Canadian policy - makers have allowed household
debt to rise above the disturbingly
high levels reached
in the U.S.
in 2007, raising the risk of a similar potentially disastrous deleveraging down the road,» Madani wrote.
«I think a lot of that negative news is priced
in — you have competition, you have
high debt levels and you have rising costs.
A parade of reports and experts explained away
high house prices and
debt levels with many of the same arguments we hear today
in Canada — yes, prices are way up compared to rents, but the analysis is built on flawed data;
debt levels are
high, but so are house prices, which minimizes the risk; America's demographics support the boom; and then the classic: There'll be a soft landing.
The banking system has been weak for years as most institutions have failed to deal with the
high level of bad
debt in the wake of the financial crisis.
There's opportunity
in emerging market
debt despite growing concerns over
higher credit
levels and the impact of a strong dollar, the chief executive of Goldman Sachs Asset Management told CNBC on Tuesday.
While the BoJ has argued that central bank asset purchases would not work
in the absence of structural reforms, strategists said that
high government
debt levels will constrain fiscal expansion.
On the other hand, leaving the interest rate low encourages the kind of borrowing and spending that has produced record -
high levels of consumer
debt in Canada and pushed housing prices into the stratosphere.
Dr. Greenspan has long been concerned that the
high US government
debt levels are going to cause a Greek - like implosion
in the USA.
A drop
in the euro provided support, helping the exporter - heavy DAX index outperfrom with a rise of 1.5 percent, while Italy's FTSE MIB rose 1.2 percent to its
highest level since October 2009, as government
debt rose on dimming prospects of a snap election.
In its latest statement, it said «household vulnerabilities have moved higher,» which is how policy makers describe the troubling nexus between excessive housing prices in many cities and record levels of household deb
In its latest statement, it said «household vulnerabilities have moved
higher,» which is how policy makers describe the troubling nexus between excessive housing prices
in many cities and record levels of household deb
in many cities and record
levels of household
debt.
Public sector banks are likely to be more hesitant to lend money to these borrowers because chances of a turnaround for companies with
high levels of
debt seem unlikely, at least
in the near term, according to Awtani.
Staley told CNBC that given the
high level of
debt across the world,
in particular among emerging markets where dollar - denominated
debt has grown dramatically, many economies could be at risk if there were sudden changes
in financial conditions.
However, the lender also cautioned clients about the possibility of a sudden drop
in the value of cryptocurrencies which «could expose them to substantially
higher debt levels than they are able to repay.»
An August Trans - Union report revealed that Canadians hold, on average, $ 26,221
in non-mortgage
debt, the
highest debt levels the credit - rating firm has ever recorded.
His comments come after the IMF
in October said that Canada's
high debt levels, and
higher - than - average pressure on Canadian households» ability to pay down that
debt in the private non-financial sector, leaves its economy more sensitive to tighter financial conditions and weaker economic activity.
There has been a public debate about whether Canadians will have sufficient income
in retirement given that generally people live longer, that there are more people of retirement age and that savings rates are low
debt levels high.
SocGen argues that it's the major economy with the «most significant risks with pockets of significant excess
in housing,
high debt levels and a burgeoning NPL problem,» and thus they see the risk of a hard landing at 20 %.
Jim Rogers: The
high levels of
debt in some areas.
Beyond these concerns, of course, we still need to fix problems that have been with us for some time during the crisis: unacceptably
high unemployment, especially among young people;
high levels of
debt in many countries; and the need to complete the financial reform agenda.
If current laws remained generally unchanged, the United States would face steadily increasing federal budget deficits and
debt over the next 30 years — reaching the
highest level of
debt relative to GDP ever experienced
in this country.
China certainly has a
high absolute
level of
debt, with
levels much
higher than those seen
in other emerging market (EM) countries who experienced
debt crises, according to Bloomberg data.
So,
in summary these are some of the themes we might expect to see
in the next chapter — the impact of technology and the growth of Asia; the normalisation of monetary conditions; the effects of
higher levels of household
debt; and the capability of our workforce and businesses to be flexible, innovative and adaptable.
NEW YORK — Auto loan originations are at the
highest level in eight years and auto loan balances, which include leases, have increased for the 13th consecutive quarter, according to the Federal Reserve Bank of New York's Q2 2014 Household
Debt and Credit report.
The national savings rate may
in fact justify the
high debt level, as some have argued, with Chinese savings matched to
debt issuance.
I believe that Canada's
high house prices
in relation to incomes, combined with record household
debt levels and overinvestment
in residential construction, will cause a severe correction
in the real estate market.
This brings me to a third plot line: that is, how we deal with the
higher level of household
debt and
higher housing prices, especially
in a world of more normal interest rates.
Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low - cost entries,
high inventory
levels and pressure from e-commerce players; reduction
in traditional advertising dollars; increasing household
debt levels that could limit consumer appetite for discretionary purchases; declining consumer acceptance of new product introductions; and geopolitical uncertainty that could impact consumer sentiment.
As for Fed easings, I continue to doubt the effectiveness of easy monetary policy
in an environment where problem
debt levels are unusually
high and capital spending is retrenching.
When
debt levels are low, reforms aimed at improving productivity, if they are correctly designed and implemented, can result
in the
higher productivity and GDP growth that could,
in principle, allow a country to «grow» its way out of
debt.
When growth is most needed, when a country is suffering from excessively
high levels of
debt, it is hard to find many cases
in which the aggressive implementation of reforms led to growth rates fast enough for the debtor to grow its way out of
debt.
The government there said
debt levels will be the
highest in 22 years, which pushed stocks
in Germany and France down by more than a percent; less
in the U.K. Conway Gittens, Reuters
The combination of very
high levels of
debt and excess manufacturing capacity can lock an economy into a self - reinforcing deflationary process
in which growth stagnates and
debt rises faster than
debt servicing capacity.
The more deeply unbalanced an economy, the
higher its
debt levels, or the more highly systematically distorted its balance sheets, the more the two forecasts will diverge and the more urgent it is that economists incorporate the balance sheet
in their analyses.
In a low - inflation environment, nominal interest rates are also low, and households are able to service much higher levels of debt than they could in the pas
In a low - inflation environment, nominal interest rates are also low, and households are able to service much
higher levels of
debt than they could
in the pas
in the past.
You may dismiss this as politically unthinkable, but when the next recession comes, we will start with much
higher debt levels than we had
in 2008.
We invest
in countries around the world at all
levels of the capital structure — from
debt (first lien bank
debt, second lien loans and
high yield bonds) to undervalued equity.
Chinese
debt levels are extremely
high and growing too rapidly largely because the growth
in Chinese investment is greater than the economy's ability to absorb it productively.
There is an improvement
in China's
high levels of
debt and its labor market.
In the case of the household sector, both Mr. Flaherty and the Governor of the Bank of Canada are warning Canadians about their
high debt levels and urging them to curtail their consumption and to reduce their
debt.
Students who rack up a large amount of
debt and begin their careers
in an entry -
level position can be particularly at risk, especially if they owe larger monthly payments on
high - interest
debt, such as private student loans.