Borrowing to Live Consumer and Mortgage Credit Revisited

Americans are awash in debt, and the U.S. economy is in trouble. Credit undergirds daily life more than ever-it has become one of the defining aspects of American life, and the ramifications are becoming clearer by the day. The already considerable damage from a depressed housing market has been exacerbated by the subprime lender implosion, sending shock waves through the financial sector, international economies, and government at all levels. Most low- or moderate-income people borrow, but that should not be construed as uniformly poor judgment or lack of discipline-Americans are not borrowing merely to keep up with the Joneses, but too often simply to stay afloat.