4. Credit standards are much better today, resulting in very low delinquency rates compared to pre-crisis. Delinquency rates in the three years preceding the crisis were over 600 basis points. Last year, delinquency rates were 21 basis points.
5. Household debt service as a percentage of income is near multi-decade lows. Whereas wage growth hasn’t been off to the races, household balance sheets are strong.
6. After the personal savings rate bottomed out in 2005 at 2.2%, consumers are tucking away more and more of their income for future consumption. The personal savings rate currently sits at 6.2%.
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