Chart of the day: US household debt-to-income versus debt servicing cost ratios

Here's a great chart from Goldman Sachs that I spied as a result of a tweet by finance blogger Conor Sen who is someone to follow on Twitter. It shows the divergence in US household debt-to-income ratios and debt servicing costs as interest rates have declined. In my view this divergence has significant implications.

This is a big issue for me because it highlights my beef with mainstream policy frameworks and their lack of regard for debt and credit aggregates or financial system fragility. An...

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