"The driver of this fragility is that 75% of a typical American families budget (not counting education costs of kids) is dedicated to fixed expenses. This means that the loss a small as 10% in a family’s income would be sufficient to force failure. Combine this fragility with increasing income volatility and even the slightest shock will set off a wave of extreme frugality and mushrooming financial failure at the household level. In the past, we were able to hide this fragility through increased debt/bubbles. That’s over. We’ve already taken on as much debt (375% of GDP right now, and still climbing) as we can acquire and the banks are hoarding the bulk of federal cash infusions to paper over their insolvency (almost all of the toxic assets from last fall’s debacle are still in place, and more are en route from commercial real-estate)." - Steven Perez from Bookmarklet

We're clearly not out of the hole yet. - John (bird whisperer)