In the third quarter of 2008, Americans began saving more and spending less. Hurrah! That only took 40 years to happen. We've been borrowing, borrowing, borrowing living off and believing in the wealth effect, first in stocks, which ended badly, then in real estate, which has ended even worse. Now we're out of bubbles. We have a lot less wealth and a lot more effect. Household debt in the U.S. the money we owe as individuals zoomed to more than 130% of income in 2007, up from about 60% in 1982. We enjoyed living beyond our means no wonder we wanted to believe it would never end.