| Household indebtedness relative to income is historically elevated, and the process of deleveraging could take time. |
| These days, Europe faces the most danger from debt reduction, depression, and deflation, and from their excessive debt and deleveraging. |
| And if a colossal worldwide deleveraging spreads to Treasury debt owned by foreigners, the situation will be deadly serious. |
| Yet consumer-credit data suggests that it is too early for the end of deleveraging. |
| The process of deleveraging still has several years to go and will slow growth. The condition of banks is another cause for concern. |
| The risks remain however as deleveraging continues against an environment of fiscal tightening, high unemployment and benign wage growth. |
