U.S. Consumers Refusing to Debt Deleverage Will Be Dragged Kicking and Screaming into the Age of Austerity
By: James Quinn
Sep 30, 2010
Now that the Wall Street Journal, New York Times, CNBC and every other mainstream media outlet have figured out what some financial blogs had figured out months ago The Great Debt Deleveraging Lie , everyone knows that the American consumers have not yet begun to deleverage. Consumer credit outstanding peaked at $2.58 trillion in July 2008. It has plummeted all the way to $2.42 trillion today, a 6% reduction over two years. The full $160 billion reduction can be attributed to write-offs by the Wall Street, Ivy League MBA run, banks.