“Total household debt in the US was roughly half of disposable income in 1962, but nearly equal to disposable income in 2004. In proportion to income, the household debt burden nearly doubled. Americans took on more debt, acquired more assets in the form of homes, and watched home prices appreciate on a levered basis. That did the trick. This time, however, the magician really is going to saw the lady in half.”
Oh, and as you might guess, his prognosis is negative.