Household debt in the U.S. is falling
According to the IMF's IFS database, U.S. household debt reached 99.4% of the U.S. GDP in 2007. But households in several other economies (Denmark, Portugal, Ireland, and probably the Netherlands) were even deeper in debt at the time.
The Fed's FRED database publishes household debt data since 2009, and it shows a nearly 20% decline in indebtneness in the last five years:
The recent data also suggests that deleveraging may be over.
Which reminds me of the following quote:
“When we figured out secondhand smoke was bad, we limited it. The government knows debt is bad but encourages it” http://t.co/DH59l3WNhK— Amir Sufi (@profsufi) June 17, 2015