This Is What Household Deleveraging Looks Like

View this email online | Add newsletter@businessinsider.com to your address book
		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Thursday, September 8, 2011 This Is What Household Deleveraging Looks Like The big news of the day is that Ben Bernanke is growing skeptical of monetary policy, which is totally logical given that he seems to be grasping the unique, deleveraging nature of the recession. In a nutshell: When households are shedding debt, making debt cheaper does basically nothing. But what is deleveraging, and what does it really mean? This chart from CFR sums it up pretty nicely. For the first time ever, total household debt has shrunk, even as the economy has notionally "recovered." Even if it were just flat, that would make this recession wildly abnormal, and as you can see it's actually going  down. Read » Also On Money Game Today: KABOOM: Texas Instruments Lowers Guidance, Citing Weaker Demand Across All Kinds Of Markets THE LIPSTICK INDICATOR: Beauty Company Says Sales Are Surging MONEY GAME TIP OF THE DAY: Don't Let One Position Rule Your Life The Top 10 Performing International Markets Of The Year Advertisement CHART OF THE DAY: Are Stocks About To Dramatically Outperform Gold? CHART OF THE DAY: Here's One Company That LOVES Today's Swiss Franc Intervention CHART OF THE DAY: THE SCARIEST JOBS CHART EVER Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.careerrrwyld@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

If you believe this has been sent to you in error, please safely unsubscribe.