Profits and Balance Sheet Developments at U.S. Commercial Banks in 2007
Figure 27. Indicators of household financial stress, 1993-2007. Data plotted as curves. Two panels. In the top panel, the number of bankruptcy filings per 100,000 persons starts in 1995 at about 300, generally rises to about 500 by early 1998, trends down to about 400 through the end of 2000, then jumps to about 520 in early 2001, and stays at around that level through early 2005. The ratio jumps in the first half of 2005 to about 650 and then spikes to around 900 at year-end 2005. It tumbles into a range of around 150 to 200 in early 2006 and then rises consistently to almost 300 by the end of 2007. In the bottom panel, the financial obligations ratio for households starts in 1993 at about 16 percent, generally rises to nearly 18 percent in 1997, remains at about that level through 2000, and then increases to 19 percent in late 2001. It edges down to about 18.5 percent by late 2004, and then rises fairly steadily to about 19.4 percent at year-end 2007.
Note: The data are quarterly. The series shown for bankruptcy filings begins in 1995:Q1 and is seasonally adjusted. The financial obligations ratio is an estimate of debt payments and recurring obligations as a percentage of disposable personal income; debt payments and recurring obligations consist of required payments on outstanding mortgage debt, consumer debt, auto leases, rent, homeowner's insurance, and property taxes.
Source: For bankruptcy filings, staff calculations based on data from Lundquist Consulting; for financial obligations ratio, Federal Reserve Board.