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Debt got way out of hand

It’s stunning to read about how leveraged our economy is, and how painful the de-leveraging process is likely to be.  Still, there are bound to be opportunities for the enterprising in all the pain around us.  A real industry shift if ever there was one. 

For the moment though, I’ll settle for reflecting on a couple of grim statistics, courtesy of theWall St. Journal.

Total Household debt rose to $13.6 trillion by the third quarter of 2007 from $7.2 trillion at the beginning of 2001 – a 10% annual growth rate.

Today, one out of every seven dollars of disposable income earned by Americnas now goes toward paying down debt. 

One out of seven!  That’s stunning. 

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