Greenspan Credit Bubble Survey Answers

1)     How many credit card solicitations were sent to U.S. households during the twelve-month period ending March 31, 2002?

        Answer: 5,000,000,000 or around 50 per household

2)     Credit card issuers have made how many dollars in available to U.S. households unused lines of credit over the past year?

        Answer: $3 trillion or about $30,000 per household

3)    U.S. per household credit card debt grew from a little over $2,000 per household in 1990 to over how much by 2002?

        Answer: $8,500, up more than 400% in 12 years

4)    In 2002 the average U.S. household has net financial assets including retirement accounts of...

        Answer: $9,850

5)     Household debt as a percentage of personal income in the U.S. rose from 58 percent in 1973 to 85 percent in 1997 to over what percentage in 2001?

        Answer: 100%

6)     In 1996, the average American family had four credit cards with balances of $4,800, up from two cards and $2,300 in balances in 1991. In 2002, the average
        American family owes how much on their seven to eight credit cards?

        Answer: $20,000, up over 400% from 1996 -- all those credit card solicitations are working!

7)    An $8,000 debt at a rate of 18% interest will take you how many years to repay and cost you how much in total if you only make the minimum payments?

        Answer: 25 years and $24,000

8)    What percentage of all Americans have less than $10,000 saved for their retirement?

        Answer: 46%

9)    Home equity as the primary source of wealth in the U.S. However, when asked to rank sources of wealth for affluent households by the
        June 2001 ORCI survey, only four in ten Americans (40%) correctly identified equity in one's home as the most important source.
        "Contrary to the belief of many, those with modest incomes can, over time, build wealth," noted Stephen Brobeck, CFA's Executive Director.
        "The easiest way to do so is to buy a home, faithfully make the mortgage payments, and be cautious about borrowing the accumulating
        home equity," he added. Nonetheless, many U.S. homeowners have taken out home equity loans.  How many?

        Answer: More than 65%

10)    Many home owners use money from cash-out home refinancings to pay for home improvements. What is the average return on investment they can expect to
        make on these for home improvements?

        Answer:  -20% best case, if the improvements brought the home up to par with neighboring homes, otherwise less than 80% can be recouped.