For example, the ratio of debt service to disposable income peaked at 14.4 percent in the fourth quarter of 2001, although it fell somewhat in 2002 as disposable income rose and interest rates declined. A few other indicators of financial pressures have also risen.
For example, personal bankruptcies rose 5 percent between 2001 and 2002 to hit a new high, and have continued to be elevated. Do these indicators imply that the consumer is financially overextended? Broadly, I think the answer is "no."