The latest balance sheet data show that household indebtedness is even worse than previously thought, but the bigger problem now is that falling home values have begun to erode household net worth. Recent increases in interest rates and tougher mortgage rules next year could see net worth shrink much further. If history is any guide, that would be consistent with slower economic growth.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.