Video

#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Squawk / 13 March 2013 at 9:29 GMT
Head of Equity Strategy / Saxo Bank
Denmark
I haven't checked this ratio in a long time. US Household Debt Service Ratio is down to 10.6 percent as of 3Q 2012 on par with the levels we saw in 92-94 and 80-84 (see chart). Of course the Fed's unusual actions have pushed down the interest rates to levels never observed before and this impacts the ratio. However, if you adjusted the figures for the interest rate level there is no doubt that US households have been extraordinarily good at reducing debt and their financial leverage; which in the end is always the foundation for the next economic boom.
6y
Peter Garnry Peter Garnry
And here is the chart.
6y
fxtime fxtime
Definately an area to watch as this could rapidly ramp consumer consumption and housing affordability....sadly the UK is clearly lagging behind.
6y
dbp dbp
I think you will find that most of the drop in US credit card debt is the result of write-offs. Indeed, there have been indications that consumers have been adding debt.

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