Quote:
Originally Posted by zipping
If that's the case why isn't the US going through a housing boom? After all they have been at zero interest rates for a long period and actively pushing as much credit as they can into their economy (to prop it up).
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This is because the US is buried up to its eyeballs in debt (at the personal, governmental and corporate levels).
- the US government has a declared debt of almost $20 trillion, with other unfunded liabilities running into the hundreds of trillions.
- personal debt (in the form of credit cards and other credit instruments like car loans and student loans) is close to $3.3 trillion.
- mortgages are running at $8.8 trillion.
- corporate debt in the US was $51 trillion last year.
You also have to remember, the sub-prime collapse in 2008 shook their housing market to the core, and it is yet to recover. However the debt binge since hasn't flowed into the housing market, it went into keeping the carcasses moving to maintain the illusion of an overall economic recovery.
Some sources for your perusal:
https://www.nerdwallet.com/blog/aver...ebt-household/
http://www.cnbc.com/2016/07/20/crexi...-trillion.html
http://www.usdebtclock.org/