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

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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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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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