Although there are pockets of financial stress among households, the sector as a whole appears to be in good shape. As bankers, you are well aware that households have taken on quite a bit of debt over the past several years.
According to the latest available data, total household debt grew at an annual rate of 10 percent between the end of 1999 and the fourth quarter of 2003; in comparison, after-tax household income increased at a rate of 5 percent.