For the past 25 years, the Americans have been borrowing to spend more and more. In 1980, the American families were saving 10% of their income. By 2008, they have negative savings - minus 2 percent. That's not all. The Americans have been spending more. So, where is the money to spend, coming from ? From debt, by taking loans. Home loans, cash out refinancing, credit card debt, and auto loans, - you name it and the Americans borrow it, to live beyond their means.
As a result of spending and borrowing, the debt per family is now 120% of their annual income ( up from 60% in 1980). All of this borrowing has finally caused a major crisis in the U.S. economy.

For Indians, there is a clear message. Avoid the consumer trap. Live within your means. Finally, save for a rainy day. Luckily, we have a tradition of saving. So we have to ensure that given a choice between a BMW and a bank Fixed Deposit, we choose the FD.