Chart 58 Consumer Credit in America
Notes: 26 percent of the U.S. population lives at, near, or below poverty level. Since 26 percent of the U.S. population lives at, near, or below poverty level with no access to credit, this implies that 74% of the population qualify for credit. 74 percent of the U.S. population qualify for credit. 69.1 percent was the peak homeownership rate in first quarter 2005. 64 percent was the average homeownership rate from 1985 to 1994. From 1985 to 1994, the homeownership rate hovered at 64 percent. Homeownership rate reached a peak of 69.1 percent in first quarter 2005. The 5.1 percent differential represents those who would not have qualified for mortgages prior to 1994 and are largely characterized as subprime. Greenspan believes that roughly 5 percent of the population is at high risk with over 90 percent loan-to-values on their mortgages. This 10 percent of the population has only recently accessed unparalleled levels of credit and could experience a recession.