Dave Kaytes

The great uneasiness accompanying the current interest-rate upturn is that many American households will quickly lose their ability to service a growing mountain of debt, including credit cards, mortgages and auto loans. This anxiety is not without good cause. At midyear 2004, total consumer debt equaled a hand-wringing 114% of disposable personal income, up from 97.5% in 2000 and 87% in 1990.