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Household Debt Can Hasten Recovery, When It Goes Unpaid

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DO YOUR PART AND DEFAULT!
"The pain of millions of people across America losing their homes hardly inspires confidence in the future. But in a brutal way, it could be restoring the financial health of the U.S. consumer faster than many recognize," the Wall Street Journal reports. "The Federal Reserve puts total household debt, including mortgage debt, at about $13.7 trillion, or 125% of annual after-tax income, a burden that many economists believe will take several years to pare down to what they see as a more sustainable level of 100%." But, the silver lining? Defaults are leading to losses at banks, a wave of foreclosures, trouble for neighborhoods and strife for families. But they are also providing an immediate, albeit radical, form of debt relief, the newspaper says. Sweet!

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