[Dan Mezick]

It's important to distinguish between mortgage debt and consumer debt. Consumer debt is caused by the purchase of cars, clothes, vacations, and toys. Moderate mortgage debt is OK. Consumer debt is evil.

The problem is in distinguishing between the two. Consumer debt is habitually converted to mortgage-debt status, via cash-out refi's, 2nd mortgages etc.

The amount of low-interest rate, high-balance "consumption-loaded" mortgage debt people are carrying is really huge, perhaps higher than it has ever been.