Banks are also more likely to lend freely when home prices rise because homes are more likely to hold their value.Americans have also been shrinking debts and saving slightly more. Household debt as a percentage of after-tax income dropped from about 125 percent before the recession to 103 percent in the April-June quarter, according to the Federal Reserve's latest data. That ratio was roughly 90 percent in the 1990s.
The Economy Obama Faces: Slow But Gaining Steadily
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