For decades, US consumers’ rampant borrow and spend habits have propelled the economic engine in US. I wrote earlier in July that a major slowdown in consumer spending has been the real reason for economic weakness in the so called “Great Recession.” Zero Hedge just put out a simple chart that explains current weakness succinctly.

It essentially says this: There has been a steep rise in net borrowing against credit cards after the previous recessions. This time it is very different.