[quote=SK in CV]
Deleveraging of what? Household debt? It’s been happening for the last 6 years. By some measurements, it’s at the lowest level in decades.[/quote]
There’s been a little deleveraging in household debt but it’s not nearly as big as everybody thinks it is. Just go look at the Fed Z-1 and you’ll see that household debt peaked at 13.968 trillion in Q1 2008 and it’s currently at 13.083 trillion Q3 2013. Is a 6% decrease in household leverage a massive deleverging event. 10 years ago (2003) it was 9.463 trillion.
Take 1980 until 2013.
1980 Nominal Median Income = $16,542
2013 Nominal Median Income = $50,099
Increase of = 308%