The Deleveraging Myth: Defaults Actually Account for Most of Reduced Debt

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The Deleveraging Myth: Defaults Actually Account for Most of Reduced Debt

Common knowledge is that the American consumer is now doing what he or she must do to confront life in the “New Normal” – that is, paying down debt diligently. This perception, though, appears to be a bit “overrated” – especially if you look at things like, well, the actual data.  The WSJ reports that […]

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We’re 3 Years Into a 7+ Year Deleveraging Cycle, Says Andy Kessler

Former hedge fund manager Andy Kessler, one of our favorites, believes that we are 3 years into a 7+ year consumer deleveraging cycle.  Andy writes: The blue is actual through the first quarter of 2010. The red is trendline and the transparent blue box is my estimate for household debt to get back to trendline. […]

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