The great deleveraging for US households continues. Household debt obligations to disposable income is now back to levels seen in the mid-1980s. This might appear good on the surface but is actually occurring because of the millions losing homes via foreclosure and taking off their balance sheet the largest debt commitment. In a way, the trillions of dollars lost in household wealth have buffered any massive inflation occurring from the trillions of dollars injected into the banking system (very little has reached US households)

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