This Awesome Brookings Presentation Explains Why The Monster Deleveraging Wave Still Has Way More To Go

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The story of the U.S. consumer in 2011 has been dominated by the threat of deleveraging.

All of that debt repayment means there is less money to spend on goods, including everything from cars to video games.

And that deleveraging process may be about to get much worse, according to Brookings.

They see an expansion of the process in 2011, but are unsure whether it’s actually going to effect consumer spending.

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content=”Source: Brookings
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[slide
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title=””
content=”Source: Brookings
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[slide
permalink=”deleveraging-is-also-about-consumers-taking-on-less-debt-3″
title=”Deleveraging is also about consumers taking on less debt.”
content=”Source: Brookings
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[slide
permalink=”and-loan-defaults-have-reduced-the-amount-of-debt-4″
title=”And loan defaults have reduced the amount of debt.”
content=”Source: Brookings
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[slide
permalink=”thats-evidenced-by-states-hit-the-hardest-by-the-housing-bust-5″
title=”That’s evidenced by states hit the hardest by the housing bust.”
content=”Source: Brookings
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[slide
permalink=”this-process-may-only-be-beginning-6″
title=”This process may only be beginning.”
content=”Source: Brookings
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[slide
permalink=”and-consumers-may-still-have-to-pay-much-more-until-we-get-back-to-pre-bubble-levels-7″
title=”And consumers may still have to pay much more until we get back to pre-bubble levels.”
content=”Source: Brookings
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[slide
permalink=”mortgage-defaults-will-play-a-part-in-further-deleveraging-8″
title=”Mortgage defaults will play a part in further deleveraging.”
content=”Source: Brookings
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caption=””
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[slide
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title=””
content=”Source: Brookings
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[slide
permalink=”leverage-and-consumption-are-not-connected-10″
title=”Leverage and consumption are not connected.”
content=”Source: Brookings
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caption=””
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[slide
permalink=”fear-might-be-a-driver-behind-deleveraging-11″
title=”Fear might be a driver behind deleveraging.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d0663654bd7c8b749080000″
caption=””
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[slide
permalink=”but-its-hard-to-tell-12″
title=”But it’s hard to tell.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d0663684bd7c8c5480b0000″
caption=””
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[slide
permalink=”-13″
title=””
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d06636a49e2aec05b010000″
caption=””
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[slide
permalink=”it-is-becoming-easier-for-investors-to-borrow-14″
title=”It is becoming easier for investors to borrow.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d06636d4bd7c8b844130000″
caption=””
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[slide
permalink=”banks-are-loosening-standards-15″
title=”Banks are loosening standards.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d0663704bd7c8b84b040000″
caption=””
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[slide
permalink=”credit-card-limits-are-starting-to-bottom-out-16″
title=”Credit card limits are starting to bottom out.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d0663724bd7c8cc48130000″
caption=””
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[slide
permalink=”its-hard-to-tell-if-and-when-households-will-be-confortable-with-their-debt-again-17″
title=”It’s hard to tell if and when households will be confortable with their debt again.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d06637549e2aebd580d0000″
caption=””
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[slide
permalink=”unsure-whether-defaults-will-actually-hurt-spending-18″
title=”Unsure whether defaults will actually hurt spending.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d0663784bd7c8cc48160000″
caption=””
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[slide
permalink=”both-are-falling-19″
title=”Both are falling.”
content=”Source: Brookings
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caption=””
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[slide
permalink=”credit-will-be-hurt-for-those-who-default-20″
title=”Credit will be hurt for those who default.”
content=”Source: Brookings
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caption=””
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[slide
permalink=”credit-scores-remain-mostly-flat-21″
title=”Credit scores remain mostly flat.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d066381ccd1d5e919020000″
caption=””
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[slide
permalink=”banks-could-pull-back-on-lending-again-22″
title=”Banks could pull back on lending again.”
content=”Source: Brookings
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caption=””
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[slide
permalink=”deleveraging-is-a-good-thing-in-the-long-run-and-unknown-in-the-short-term-23″
title=”Deleveraging is a good thing in the long run, and unknown in the short term.”
content=”Source: Brookings
image=”http://static.businessinsider.com/image/4d066387ccd1d51619150000″
caption=””
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[slide
permalink=”worried-about-another-d-24″
title=”Worried about another D?”
content=”Check out a deep walkthrough of an America that’s one step away from a deflationary nightmare >
image=”http://static.businessinsider.com/image/4c2352f47f8b9aa23e980000″
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