And Europe’s edge in household debt has also been taken away..

From the B of E Financial Stability Report:

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Personally speaking, while US household debt has fallen I still think it needs to fall back to mid 1990s levels relative to GDP and income before we can see a more stable consumer component of GDP– income growth has been weak, unemployment remains high and nominal GDP growth, an important factor in supporting debt growth, is at historically low levels.   Low nominal GDP growth negates many of the benefits of lower yields.  I believe therefore that we are still in a deleveraging cycle.  

Euro area household debt would also appear to be problematic given the significant increase in unemployment since the start of the crisis and hefty increases in Euro wide sovereign debt and contingent liabilities.

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