What's behind the debt crisis? - Debt!

The professor says "debt" and sells it as a revelation: Household Debt Is at Heart of Weak U.S. Economy: Business Class: 
"... We need to move beyond this hackneyed debate, and doing so requires a reframing of the discussion. The optimal policy response can only be formed if we know why the economy remains weak. And in making the diagnosis, it is crucial to check ideology at the door and instead be guided by the data.
And the data tell a compelling story: The main factor responsible for both the severity of the recession and the subsequent weakness of the economic recovery is the deplorable condition of the U.S. household balance sheet...."

Thanks for the reminder.

Backgrounder:

"The financial crisis is not over. Neither tax rebates nor low interest rates nor higher or lower exchange rates can do the job of reviving an economy that is burdened by debt loads that are too high. On the contrary: the policy measures that the US authorities have been applying will prolong the agony. Be prepared for the challenges of extended financial turmoil and economic stagnation."
Antony Mueller, What's behind the financial market crisis? September 2008