a double dip?

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http://www.levy.org/docs/ppb/ppb73.pdf

Public   Policy   Brief   Summary

Asset and Debt Deflation in the United States
How Far Can Equity Prices Fall?
No. 73, 2003
Philip Arestis and Elias Karakitsos


In an asset and debt deflation, the process of reducing debt by saving and
curtailing spending takes a long time, say the authors. Current imbalances
and poor prospects for spending in the private sector affect the balance
sheets of the commercial banks. The downward spiral between the banks and
the private sector induces a credit crunch that adversely affects the U.S.
economy, which is vulnerable to exogenous shocks and lacks the foundations
for a new, long-lasting business cycle.