Sunday, September 19, 2010

Article du jour: Defaults Account for Most of Pared Down Debt

Mark Whitehouse, Wall Street Journal

0.08% — The annual rate at which U.S. consumers have pared down their debts since mid-2008, not counting defaults.

U.S. consumers might not be quite as virtuous as they seem.

The sharp decline in U.S. household debt over the past couple years has conjured up images of people across the country tightening their belts in order to pay down their mortgages and credit-card balances. A closer look, though, suggests a different picture: Some are defaulting, while the rest aren’t making much of a dent in their debts at all. (Read more)

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