As housing values increase, Americans tend to save less. This is evidenced by the sharp drop in personal savings rates [RisMedia] . Now the personal savings rate is negative. [Reuters]  In other words, we are spending more than we make.
“Many older workers, rather than building ‘nest eggs’ and paying down debt, are saving little and taking on adjustable-rate debt programmed to rise with interest rates, Kevin Lansing, senior economist at the San Francisco Fed, said in an economic letter.”