What does this mean for the stimulative effects of tax cuts, transfer payments, or any other kind of government spending? What does it mean for the savings rate--savings could conceivably go up as a fraction of income at the same time it goes down in absolute terms. I don't know--I'm not even sure how we could know. Has any other country ever had this level of personal debt before?
Gosh, Megan, I don't know. Why don't you look it up, do some thinking, and blog about it, instead of asking us? Isn't that your job?
We are being led by children. [Correction--We were being led by children. Now it's time to get rid of the rest of the Bush croud.]