It Will All Hit The Fan in 2007, Part 6

Check out this chart from the Federal Reserve Bank of St. Louis showing the recent explosion in household debt (click on the chart to make it bigger).

Total outstanding household debt has gone from around $4 trillion in 1990 to $12 trillion today.

This is occuring at the same time U.S. savings rates are hitting all-time lows

By itself, the parabolic growth of household debt may not be significant, but when combined with the other signs I have previously discussed, this is yet another bad omen for the U.S. economy.

(The above chart was last updated by the Federal Reserve on 03/10/2006.)

Links to previous "It Will All Hit The Fan in 2007" posts:
Part 1, Part 2, Part 3, Part 4, Part 4 (Addendum), Part 5