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"What has distinguished this recession from past recessions is the careless behavior of financial institutions as lenders, and consumers as borrowers. The consumer increased his debt load borrowing more money as debt levels soared, savings plummeted and spending multiplied. The consumer’s mantra has become “eat, drink, and be merry, for tomorrow we die.” What makes this recession different from others preceding it is the complete abandonment of sound financial principles. Banks have become more aggressive in their lending to consumers, especially with sub par borrowers. Consumers, on the other hand, have jettisoned savings and spending restraints in favor of a borrowing and spending binge. With the stock market no longer providing a cushion to net worth, homeowners are tapping into their home equity to pay bills and support consumption. None of this is healthy. It tells me that a day of reckoning is fast approaching. You can’t have general prosperity based on debt. Debt gave us the bubble, debt gave us a mild recession, debt gave us a feeble recovery, and debt will bring this market and economy to its knees. I have yet to discover any empire throughout history that has prospered on account of debt. In most cases the rise in unprecedented debt signaled the empire’s fall."

http://www.financialsense.com/Market/wrapup.htm