Deleveraging the American Consumer Sector

After years of funding consumption with cheap credit — largely coming from overseas — American consumers have become increasingly cautious about leverage because of the housing crisis. What are the implications? What are the risks and opportunities? How can you make the most of this new era? We’ll explain.

In the past 10 years, private sector leverage increased at a record pace, thanks largely to cheap mortgage credit.  In fact, since 2000, U.S. consumers have been spending more than they've been earni.....