The resurgent US economy is hitting a sales lull and economists -- not to mention us consumers -- are wondering whether a double dip recession is in the offing. Since commerce powers the economy, data from the Federal Reserve shows a bright spot and a dark spot.
The ratio of household debt to disposable income hit 130% in 2007 and you can only play with the credit cards and take equity out of your home for only so long before the party winds down. The good news is that said ratio in the first quarter 2011 fell to 114%. The bad news is that a sustainable ratio is about 90% -- the 1990s saw an average of 89% -- and it could take another five years to drop the ratio to that level.
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