Household Belt-Tightening: Will the Trickle Become a Flood?

The top 0.1% will weather a recession just fine, but that will offer cold comfort to the other 130 million American households.

It seems at least some households are realizing they need to rein in spending. This reality is obscured by statistics which distort the financial security of average households. As always, we have to separate the top 10% who collect 40% of the income and own about 90% of the financial assets from the bottom 90%, as the top 10% distort the risks faced by…