ZH: Why debt-to-income ratios are worse than they appear

ZERO HEDGE reports:

(Authored by Lance Roberts via RealInvestmentAdvice.com)

I recently published an article discussing why “recessions” are a good thing by reverting debt buildups excesses during expansions. The argument against debt reversions is always the same in that “debt-to-income” ratios low. To wit:

“One reason (of many) we don’t need a debt reversion is that household debt service costs (interest etc.) as a % of household incomes are currently at a 40 year low.” – S. Porter

If you look at a chart, it certainly would seem ...