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Article: Home equity loans and the business cycle.
- Article from:
- Business Economics
- Article date:
- January 1, 1989
- Author:
CopyrightCOPYRIGHT 1989 The National Association for Business Economists. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Although consumer debt is at an all-time end, it will not necessarily act as restriction on future economic growth; factors such as demographics, convenience use of credit cards, deregulation of the financial services industry, and a new avenue of consumer credit - home equity loans - must be considered. The traditional government statistics on consumer installment credit do not include home equity loans; thus, the home equity portion of consumer debt must be estimated. It is not clear how this small but rapidly growing portion of total consumer debt will reach to changes in the business cycle. Both of these issues are addressed in an effort to estimate the size of this ...