BLOOMBERG: U.S. debt has shrunk to a six-year low

[kpete]

Last edited Wed Oct 10, 2012, 10:24 AM - Edit history (1)

U.S. debt has shrunk to a six-year low relative to the size of the economy as homeowners, cities and companies cut borrowing, undermining rating companies’ downgrading of the nation’s credit rating.

Total indebtedness including that of federal and state governments and consumers has fallen to 3.29 times gross domestic product, the least since 2006, from a peak of 3.59 four years ago, according to data compiled by Bloomberg. Private- sector borrowing is down by $4 trillion to $40.2 trillion.

Downgrading the U.S. is premature when the two-thirds of American debt that is private is shrinking, according to Jim Vogel, head of government agency-debt research at FTN Financial in Memphis, Tennessee.

“When one trend goes counter to the only one that they seem to be looking at, that throws up a flag,” Vogel said in a Sept. 27 interview in reference to the ratings firms. “If private debt is getting on a much firmer credit foundation, why do we have a 2013 deadline for one of the thorniest fiscal problems of an entire generation?”

http://www.bloomberg.com/news/2012-10-09/u-s-downgrade-seen-as-upgrade-as-u-s-debt-dissolved.html

[malaise]

1. And why aren't Dems screaming about this from the

mountain tops?

[sinkingfeeling]

2. Guess the GOP will be calling this another socialist lie made up of

skewed numbers and fake facts.

[bulloney]

10. Jack Welch's head to explode over this "bogus" report in 3...2...1....

It's hard to believe that people's political loyalties supersede the general welfare of this country. Some people would rather see this country collapse and take them down with it under Obama than to get the country out of the mess we were in four years ago and move in the right direction.

Four years ago we were on the cusp of a second Great Depression. The economy is recovering despite Republicans' attempts to throw everything including the kitchen sink at any attempts by the Obama Administration at turning the economy around. Then, thanks to the compliant MSM gerbils, Republicans scream uncontested that Obama doesn't try to work with them, while they say debt is continuing to go out of control, we're still losing jobs and on and on.

I've often said that if Republicans were half as loyal to their faith as they are to their politics they would all be up for sainthood.

[Cha]

19. lol..Jack Welch has gone

into hiding. No reports on whether head is still intact.

[GOTV]

3. One of the few good things to come out of the financial collapse

[bigdarryl]

4. Doesn't matter if Obama and his team don't use it on the campaign trail

[abumbyanyothername]

5. Not sure about the current numbers

but at one time during the most recent financial crisis, the entire reduction in consumer debt was due to write-offs by banks of debt. In other words, consumers were not paying down debt. They were defaulting on it.

Not that that is a bad thing either.

[randome]

12. A controlled mass default is in everyone's best interests.

[ailsagirl]

6. kick

[coalition_unwilling]

7. K&R - n/t

[Sheepshank]

8. What aren't chartls like this more widely distributed?

I'm so sick and tired of all the "debt" blame being leveed on Obama. Look at that spike from 2002 to 2010. It's so painfully obvious....

[spanone]

9. americans don't appear to care about facts

[hue]

11. Hope Joe will ask the "Numbers man" Ryan about this tomorrow night!!!(& stick it to him!)

[Whovian]

13. Why is it that I doubt I will hear about this from a Fox New Source?

Or Limbaugh, or Hannity or...

[Berlum]

14. "Vote Republican and we will Lift the Debt Higher and Higher." - Republicans (R)

"As we have done historically over and over and over and over. Smirk." - Republicans (R)

[FogerRox]

17. HA ! love that pic

[Berlum]

18. You can't make this stuff up

Last edited Thu Oct 11, 2012, 05:42 AM - Edit history (1)

.

[George II]

15. Well gosh a'mighty, I thought Obama was driving us FURTHER into debt?!?!?!

[frostfern]

16. That right there is the reason the economy hasn't been growing more quickly.

[img]http://4.bp.blogspot.com/_glc2GREPbJs/TJdy6ocEEvI/AAAAAAAABWU/ca2kdnres8E/s400/DebtDeleveragingGraph[/img]