Quote:
Originally Posted by Rajoo
To put things in perspective,
US Government debt = $31 Trillion
US Household debt = $16.9 Trillion
Since majority of this debt is due to mortgages, the underlying debt will be considered part of our nation's assets at MSU?
On second thoughts, is this $16.9 Trillion household debt part of the national debt?
https://www.cnn.com/2023/02/16/econo...ter/index.html |
Yes, most of the $16.9 Trillion is mortgages. The average debt is about $165K per household. With housing prices inflating over the past few years, the $165K is not a surprising number.
Since the Gov't backs about 30% of home loans, the US taxpayer would potentially be on the hook for any of those loans that defaulted. Since 2008, we've gotten the gov't out of the subprime mortgage game, so hopefully, the default risk is lower than it was in 2008.