Families Aren't the Only Ones Reducing Debt

http://www.hsdent.com/blog/Families_Arent_the_Only_Ones_Reducing_Debt


Pls see link above


This is a BLOG I would recommend 


Extract from above link
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Meanwhile, what is NOT being talked about, is the continued free-fall in financial sector debt.  This would be the shadow banking that funded much of the mortgage mess.  This category of credit (domestic financial sector credit outstanding, Federal Reserve Z.1 report) fell another $1.38 trillion in 2010, bringing it's total reduction since 207 to $2.89 trillion.  That number should stop you in your tracks. 

When it is added to the amount by which households have decreased their debt outstanding ($446 billion since 2007), we get a private credit reduction of $3.3 trillion over the last 3 years.  Compare that with the Fed's printing of $2.3 trillion and you'll see why we still have a deflationary forecast.