Debtor Nation: U.S. Spends Less as It Owes More

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June 9 (Bloomberg) -- Bloomberg’s Michael McKee reports on the argument contained in the book “House of Debt” that Americans’ debt levels are still holding back spending and hitting the housing market especially hard. He speaks on Bloomberg Television’s “In The Loop.”

Puzzled everyone.

The false is not in the bank that in ourselves.

Michael has a real deal on our house of debt.

Do we need self reflecting?

We do.

This was called equity numbers of the year.

House of debt by two university of chicago board deaf professors argues everyone looking at the banks to solve our problems is looking in the wrong place.

Consumer debt in the last decade destroyed the economy and not the week they alice sheets.

We cannot spend because we ran out of money.

Mortgages were too high.

We cannot spend now because we are still paying it all back here at the government response to the crisis has in all about helping the bank and not the average american there and they suggest that is a big reason we are still struggling.

As long as we have a debt, we will have big problems ramping up our spending.

On hey -- a historical basis, we owe a lot, even though we paid off a huge amount of data from the federal reserve just out this week.

Income and 92% and a heck of a lot higher than the 67% average in the past decade.

Five what about the fact all of these people owed a lot of money were given ease and -- easy money by the banks?

Were they not all encouraged by?

They were but he was us that took on the debt.

It is not just the banks.

It is us.

Almost too late to do anything about it now because we have gone through so much of the cycle.

We are still writing down enormous amounts.

We are only to about 2004 levels.

But they are up.

The biggest problem we have in terms of aim this debt as well is we're not making more money to do it.

The median income for the average household is till 1995 levels and still going down.

The latest data for 2012 -- the problem you have in europe is the more they have come the last they can spend.

So they do not buy as much stuff from us.

It is a problem worldwide.

This is a way we can look now from -- to keep from getting into bubble situations.

Follow the household debt.

Thank you.

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Stay in the loop as we head toward the open.

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This text has been automatically generated. It may not be 100% accurate.

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