US household wealth reached $89.1 trillion in 16Q2, the third straight record setting quarter. Wealth cyclically peaked in 07Q2 at $67.7 trillion, and then declined through 09Q1, bottoming at $54.4 trillion. Relatedly, the 16Q2 US household debt service ratio, the ratio of total required household debt payments to total disposable income, remains at 10%, near an all-time low and down dramatically from 13% in 07Q4. Collectively, households look quite good.
Elliot F. Eisenberg, Ph.D.